A small town Louisiana mayor has blamed the 'devil' for trying to ruin her re-election campaign after she was arrested for a $75,000 fraud scheme. 

Winnsboro Mayor Alice Wallace, 50, has allegedly been receiving fraudulent Medicaid benefits since 2021, according to Louisiana Attorney General Liz Murrill.

Wallace became mayor in 2022 and failed to report a change of household income to the state health department, the attorney general's office said.

She also failed to disclose her marital status and intentionally misrepresented the availability of employer-provided health insurance, authorities said.

Wallace's mayoral salary would have disqualified her from being eligible to receive Medicaid benefits, but investigators allege she and her daughter continuously utilized benefit programs through 2026.

She was arrested by Louisiana Bureau of Investigation agents in Baton Rouge last Tuesday and charged with six counts of government benefits fraud.

She was booked into the East Baton Rouge Parish Prison. Jail records show that she appears to have been released on bond.

Wallace, the first woman elected to lead Winnsboro, has seemingly denied the allegations against her and alleged the accusations are an attempt from the 'devil' to 'discredit' her bid for re-election.

'The devil is trying to embarrass and discredit leadership to possess power again through those who know zero, that way they can run it!!' she wrote on Facebook.

'This way you won't trust someone who can be trusted. Just look who's backing them! It's election time what else you got! I'm still standing!!'

The mayor claimed that she has been insured by healthcare provider Blue Cross since 2021 and that her daughter's father provided their child with insurance.

She questioned why she would 'bill Medicaid' for healthcare expenses if both of them were already covered.

'Talk to the doctors!' she urged. 'I do believe that I will be vindicated but just know that if you dug one ditch better dig two more bcuz for the ones they're trying to get in office, the whistle has been blown! 

'I work for a living, I didn't PPP my way! It's a reason why we've registered 200 and they've registered none, they were waiting on this!'

Wallace said she is 'still gonna win' the election and claimed the allegations against her have 'just energized Team Wallace.' 

Murrill, however, has said: 'It doesn't matter who you are – if you defraud the hardworking taxpayers of Louisiana, you're going to jail.' 

Winnsboro, located about 40 miles outside of Monroe, is a rural, agricultural-based town with a population of just 4,862 people, census data showed.

Wallace became mayor in 2022 after defeating incumbent mayor John C. Dumas, both Democrats, by 12 votes.

At the time of her election, she vowed to reduce crime in Winnsboro by creating new jobs. She also aimed to bring more recreational areas to the town.

She is running for re-election in the town's May 16 election.