Twelve Charged in San Diego Over Alleged $10 Million Childcare Fraud Scheme

San Diego, CA, September 15, 2026 —

Federal authorities in San Diego have brought charges against twelve individuals accused of orchestrating a scheme to defraud government childcare programs of over $10 million. The alleged operation involved the creation and management of ‘ghost’ daycares, where payments were sought for children who were purportedly enrolled but not actually receiving care.

According to the charges, the defendants are alleged to have submitted fraudulent claims to government-funded childcare assistance programs. These claims purportedly represented services rendered for nonexistent children, allowing the operators to collect substantial payments through deception. The investigation, led by federal authorities, identified the alleged pattern of fraud through the operation of these fictitious daycare facilities.

The investigation into the alleged fraud encompassed claims totaling more than $10 million. The specific names of the twelve charged individuals were not immediately available in the summary provided. Similarly, the exact timeline of the alleged fraud, including when the scheme began or when the charges were formally filed, was not specified.

The method described involves creating ‘ghost’ daycares, a tactic where facilities claim to provide childcare services for children who are not genuinely attending or enrolled. This allows the operators to fraudulently obtain funds designated for childcare subsidies and reimbursements. The federal authorities’ action signifies a step in addressing this alleged misuse of public funds intended to support families and childcare services.

Further details regarding the specific government programs targeted, the breakdown of the alleged fraudulent payments, or the names of the entities involved in operating the childcare programs were not provided. Information regarding potential legal proceedings, such as arraignment dates or the specific charges filed against each defendant, was also not detailed in the summary.

The alleged fraud came to light through an investigation conducted by federal authorities. The outcome of these charges and any subsequent legal proceedings will determine the veracity of the allegations and the accountability of the individuals involved. The investigation focused on identifying and dismantling the alleged network responsible for defrauding the childcare programs.

Story summarized from the original created by Ken Sweet on www.kpbs.org, see more information here.

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