# Fake daycares allegedly stole $10M in California subsidies

> Twelve people arrested in San Diego for allegedly running bogus childcare facilities to collect government payments.
- Title: Fake daycares allegedly stole $10M in California subsidies
- Summary: Twelve people arrested in San Diego for allegedly running bogus childcare facilities to collect government payments. Surveillance footage contradicted…
- Keywords: daycare fraud, san diego, california, todd blanche, child development associates, ymca, wire fraud, money laundering, childcare subsidies, abdulrahman ayman alawad, turkiya mamdouh alawad, syria
- Source: California Post — https://nypost.com/2026/09/15/us-news/massive-daycare-fraud-bust-exposes-alleged-10m-scheme-involving-refugees
- Published: 2026-09-15T22:15:12+00:00
- Read time: 1 min
- Topics: daycare fraud, san diego, california, todd blanche, child development associates, ymca, wire fraud, money laundering, childcare subsidies, abdulrahman ayman alawad, turkiya mamdouh alawad, syria
## 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
## Key takeaway

Surveillance footage contradicted attendance records that claimed children were being cared for daily at licensed facilities.