SANDPOINT - A Sandpoint woman accused of defrauding the state by obtaining public assistance benefits she was not entitled to has paid more than $13,000 in restitution, according to the Idaho Department of Health & Welfare.

Erika Renae Malone also pleaded guilty to a misdemeanor theft charge in connection with the scheme, court records indicate.

Malone, a former Health and Welfare intern, was fined $300 and placed on probation for a year when she was sentenced by Judge Debra Heise on Oct. 1. Judgment was withheld, which means the petty theft charge could be removed from her criminal record if she successfully completes probation.

Malone's internship was "unrelated" to the case, Health & Welfare said.

Malone, 29, wrongfully obtained public assistance from 2005 to 2007, according to charging papers. She was charged, pleaded and sentenced in a single court hearing, records show.

The case was resolved through a plea agreement, court documents said.

Health & Welfare said Malone deceived the department by failing to report her total income when she sought public assistance. As a result, Malone received $8,160 in child care assistance and $5,145 in Medicaid coverage.

The department said its fraud investigator in Coeur d'Alene, Steve Berg, discovered that Malone was employed, but she failed to report all of her income. Above her reported income, Malone was depositing $1,500 to $3,000 into her checking account each month without disclosing the deposits to her caseworkers, Health & Welfare said.

The unearned income made Malone ineligible for the public assistance benefits she was receiving.

Welfare fraud is a "fairly rare occurrence" and that most recipients of public assistance are honest people in need of helping hand, Health & Welfare said in a press release announcing the case's resolution.

"Even though we have 186,000 people enrolled in Medicaid and nearly 7,000 children covered under Child Care Program, this case shows that when people attempt to defraud the government, we are vigilant and we take action," Steve Bellomy, Health & Welfare's bureau chief for audits and investigations, said in a statement.

n Assistance abuse can be reported by calling the department's toll-free hotline (1-866-635-7515).