Dozen Arrested in $10 Million Fake Daycare Fraud Scheme

Twelve individuals face federal fraud charges after authorities uncovered a scheme diverting over $10 million meant for low-income childcare to fraudulent providers. Early Thursday, more than 250 law enforcement officials from federal, state, and local agencies arrested all defendants at homes in San Diego designated as daycare facilities. Assistant Attorney General Colin M. McDonald stated that stealing from programs supporting children warrants swift accountability, while U.S. Attorney Adam Gordon noted these are the first charges of this specific fraud type since the creation of the National Fraud Enforcement Division. Homeland Security Investigations Director Michael Krol emphasized that taxpayer-funded benefits exist to support working parents and children, not enrich criminals.