The woman claimed that she could only use one arm and was paralysed down the entire left hand side of her body.
Maribel Milligan was jailed for three years after a jury found that she had illegally received more than £539,000 during 11 years.
However, the woman was seen dancing and raising her arms in the air as she clapped along to Michael Jackson’s famous hit, Bad.
A court heard how she had been living a “lavish” lifestyle, after she had turned the top of her home into a massage parlour which was only accessible by a steep staircase.
Maribel Milligan was captured dancing to Michael Jackson hit, Bad
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Milligan also had homes dotted around the country, including one in her native home Venezuela.
Jurors giggled at the woman’s “laughable” excuses for the deception during her week-long trial in December.
Milligan was jailed for three years with images showing her outside the Eiffel Tower and dancing at a wedding ceremony.
The woman, who illegally claimed seven different types of benefits, sat in a wheelchair during sentence after a GP wrote a letter claiming she had some health problems.
Maribel Milligan has been jailed for three years after claiming more than £500,000
It was quite incredible to see you stepping swiftly from a chair and dancing with your husband
Judge Howard Crowson
Judge Howard Crowson said: “It was quite incredible to see you stepping swiftly from a chair and dancing with your husband.
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“You portrayed yourself at the trial as the victim – a person wronged. It was simply to protect your false reporting.”
Milligan’s scam was discovered after a whistle-blower called the benefit fraud hotline.
In total, the fraudster made £539,907.43 from 2002 by claiming hardship and severe disability, however prosecutors revealed evidence showing she wasn’t as fail as she claimed.
Jurors laughed at some of Maribel Milligan excuses for the deception
Ben Reid, from the CPS' specialist fraud division, said: “While Maribel Milligan had a genuine disability and was entitled to some support, she deliberately went about claiming more than £500,000 of taxpayer's money.
“Through careful analysis of the evidence, the prosecution was able to demonstrate how these fraudulent benefit claims continued over a significant period of time.”
She had one Venezuelan home from the outset of her claims in 1994, the court heard, while she got others from her ex-husband.
One of her biggest payouts was from Hammersmith and Fulham Council, where she took around £170,000 despite not permanently residing there.
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