Dozen Californians Charged in $10 Million Child-care Subsidy Scam

In a coordinated operation announced in San Diego, the Justice Department and the IRS Criminal Investigations Division charged twelve individuals for a large-scale child-care subsidy fraud scheme in Southern California. Prosecutors say the defendants operated licensed at-home facilities but submitted fabricated attendance records, allowing them to draw more than $10 million from government programs. Evidence includes surveillance footage showing virtually no children at some sites and travel records indicating that one defendant was outside the United States while still filing claims.

Payments ranged from hundreds of thousands to over $1 million per defendant, with some claims spanning multiple years. The investigation mirrors a similar case involving the Minnesota-based Feeding Our Future organization, though the California fraud is larger in monetary scope. The crackdown aligns with one outlet administration’s intensified focus on detecting and prosecuting abuse of federal benefit programs, overseen by Vice President JD Vance’s task force.