12 charged in alleged $10 million Southern California childcare fraud

  • Federal prosecutors charged 12 people over alleged San Diego County childcare-payment fraud.
  • More than $10 million was allegedly collected despite few or no attending children.
  • Justice Department’s fraud division issued its first indictment of this type since April.

Federal authorities charged 12 people with allegedly collecting more than $10 million in government childcare subsidies through licensed, at-home facilities in San Diego County that prosecutors say had few or no children attending. The defendants allegedly submitted false attendance records for months or years, with some claims filed while operators were outside the United States. The charges, announced in San Diego by the Justice Department and the IRS Criminal Investigations Division, represent the first indictment of this type since the Justice Department’s fraud enforcement division was created in April. Prosecutors said the investigation remains active. The federally funded programs help low-income families pay for childcare while parents work or attend school, but limited funding has left many eligible families on waitlists. The case is larger than the separate Minnesota-based Feeding Our Future prosecution, which involved roughly $4.6 million in childcare claims but focused more heavily on meal subsidies. The Trump administration has made alleged fraud and waste in government benefit programs a priority, though some related efforts have faced criticism and legal challenges.

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