Whitefish Bay couple accused of stealing $115,000 from state in fraud scheme



WHITEFISH BAY (WITI) --This is a couple who seemed to have it all, but they apparently wanted more in the form of government handouts.  A Whitefish Bay couple, living in an almost $400,000 home, is suspected of food stamp fraud. Investigators believe they intentionally committed public assistance fraud to the tune of $115,000.

Tan stone, bright blue trim, it's a home that stands out near the corner of Santa Monica Boulevard and Belle Avenue in Whitefish Bay.

"I wouldn't think that they'd have money problems," said a neighbor.

Now it's a home neighbors are talking about, and it has nothing to do with the decor. Detailed in a search warrant, executed by Whitefish Bay police earlier this week, is an alleged scheme to fleece the government out of nearly $115,000.

Investigators say Todd Schaller and Mary Gallagher live there with their daughters, it's a home valued at roughly $380,000.

Mary Gallagher & Todd Schaller



"I'm shocked. I didn't know anything was going on," said a neighbor.

But according to court documents, Gallagher had reported she lived alone in the home in Shorewood. Records show the couple sold the house in 2009.

Officials believe the fake address was done so that the couple could hide income and collect government assistance.

Since 2006, it breaks down to nearly $64,000 from the food share program and $51,000 from medicaid.

An anonymous letter tipped off investigators -- and even included copies of Gallagher's Quest card, application for free school lunches, and a 2012 Milwaukee Journal Sentinal article that showed off their lavish home and 'blended household' -- clearly defining the couple as living there. The tipster says they have for nine years.

When police arrived to search the place this week it caused the kind of scene that will likely put Gallagher and Schaller back in the newspaper, but for different reasons.

Both Gallagher and Schaller were arrested but released from custody. Investigators from Whitefish Bay police would not comment on camera.

The state Health Services Fraud Investigator assigned to this case, did not return our call.