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CrimeQuiet 8d · day 8

12 charged in $10M San Diego childcare fraud scheme with fake daycares

Federal prosecutors announce arrests of suspects who allegedly stole funds meant for low-income families through fake childcare services.

newest coverage 8d agosummary written 3d ago2 pieces Newswires

What to know

  • Twelve San Diego County residents charged with stealing $10+ million from childcare assistance programs meant for low-income families through fake home daycare operations.
  • Defendants submitted false attendance records and claimed to provide childcare services they never rendered; some were outside the U.S. when claiming to work.
  • Nine defendants came to the U.S. as refugees and all but one are now U.S. citizens—a detail emphasized by federal investigators as showing exploitation of the immigration system.
  • Individual defendants received between $538,000 and $1.2 million; charges include wire fraud and money laundering.

“Entering our country as refugees, they took advantage of our generosity and our values, siphoning millions of dollars in illicit gains from childcare programs through the fabrication of phantom services and phantom clients.”

Michael Krol, Assistant Director, Homeland Security Investigations · Courthouse News ↗ · Sep 14

Colin McDonald Assistant U.S. Attorney General, National Fraud Enforcement DivisionMichael Krol Assistant Director, Homeland Security InvestigationsTimothy Courchaine U.S. Attorney for the District of ArizonaAbdulrahman Alawad Defendant

12 charged in $10M San Diego childcare fraud scheme with fake daycares
Courthouse News

How it unfolded 1 development · click the chart to see its coverage articles

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Sep 16Sep 17Sep 18Sep 19Sep 20Sep 21yesterdaynow · 11:21 PM ET
  1. 1

    Prosecutors detail specific fraud tactics and theft amounts

    According to indictments, defendants submitted false attendance records—one defendant claimed to provide care for 23-25 children when surveillance showed children present only once during the period. Individual defendants received between $538,000 and $1.2 million; one defendant received $300,000 in 2025 from San Diego County, the YMCA, and Child Development Associates. Investigators found some defendants were outside the United States when they claimed to be providing childcare.

    “Anyone who steals from programs meant to support children will face swift and uncompromising accountability. Fraud against these programs is an attack on vulnerable families.”
    — Colin McDonald, Assistant U.S. Attorney General, National Fraud Enforcement Division · source
    1. 2 outlets 12 charged in $10 million childcare fraud scheme

      first by Courthouse News, 8d ago · also Courthouse News Service

  2. background

    Federal prosecutors charge 12 with $10 million childcare fraud — Prosecutors announced charges of wire fraud and money laundering against the defendants, alleging they registered fake home childcare facilities and submitted false monthly attendance records to steal funds intended for low-income families. Nine defendants came to the U.S. seeking refugee status; all but one are now U.S. citizens.

  3. background

    Twelve people arrested in San Diego childcare fraud sweep — Federal, state and local law enforcement arrested 12 defendants (six men and six women, ages 25-63) after executing 12 search warrants at homes linked to fake daycares.

  4. background

    Federal agents begin investigating childcare fraud scheme — Investigators launched an operation dubbed Cradle to Grift to look into suspected fraud in San Diego County childcare programs.