Twelve arrested in daycare scam

A dozen people from Syria, Afghanistan, Sudan, Iraq and Somalia were arrested for allegedly funneling over $10 million in taxpayer-funded childcare subsidies to fake providers.

“Completely bogus daycare facilities”

How the scheme worked

Defendants obtained California licenses for home childcare facilities, registered with legitimate organizations, then submitted phony attendance records to collect government payments.

Surveillance caught the lies

One defendant claimed 23 children attended in March, but surveillance over 57 days showed children only on the day a state inspector arrived unannounced.

Fraudulent claims while abroad

Turkiya Mamdouh Alawad allegedly submitted January attendance records and collected $14,970 in deposits while border records show she was out of the country for most of the month.

Millions stolen per defendant

Each defendant allegedly collected between $538,000 and $1.2 million. One received over $300,000 in 2025 alone, with several collecting more than $1 million each.

Serious prison time possible

All defendants face wire fraud charges carrying up to 20 years in prison and $500,000 fines. Some also face money laundering charges with the same maximum penalties.

“Shameless attempts to steal taxpayer-funded childcare funds for personal gain endanger support for some of our nation's most vulnerable children”