Twelve naturalized migrants have been accused of stealing approximately $10 million from American taxpayers via a fraudulent daycare center scheme, according to the Department of Justice.
| PULSE POINTS |
❓ WHAT HAPPENED: The Department of Justice (DOJ) has charged 12 individuals with wire fraud and money laundering for operating fraudulent daycare centers in San Diego, California. 📺 DETAIL: On Tuesday, the DOJ announced that eleven of the accused are naturalized U.S. citizens, while one has a green card. They are reportedly migrants from Afghanistan, Iraq, Somalia, Sudan, and Syria. The accused used their daycare licenses to steal over $10 million in federal subsidies by registering with organizations such as Child Development Associates (CDA) and the YMCA, allowing them to submit falsified attendance records to fraudulently claim childcare payments. According to surveillance footage and border crossing records, many were not even in the country when they claimed to be providing childcare. In one example, Turkiya Mamdouh Alawad, a 63-year-old migrant from Syria, submitted attendance records to, and received subsequent payouts from, the CDA and the YMCA for January 2024, despite having been outside the United States between January 1, 2024, and January 30, 2024. The alleged fraud was conducted over several years, with some of the accused receiving over $1 million in fraudulent payments. They were arrested Thursday last week in a law enforcement operation involving over 250 officers. “Today is a bad day for home daycare fraud… These are the first charges alleging this type of fraud since the formation of the National Fraud Enforcement Division… These fraudsters may have criminally gamed the system before. But today, the game is over,” said U.S. Attorney Adam Gordon. 💬 KEY QUOTE: “By following the money, IRS Criminal Investigation uncovered patterns of deceit that revealed twelve ghost daycare operations billing for children who were never present… This was not a victimless crime… It deprived working parents of critical support and eroded trust in programs meant to protect the most vulnerable in our communities. We remain steadfast in our commitment to safeguarding federal funds and ensuring that those who exploit public programs for personal gain are held fully accountable,” said Jared Koopman, Head of Criminal Investigation at the Internal Revenue Service (IRS). 🎯 IMPACT: The accused face up to 20 years in prison and significant fines if convicted. This reflects the Trump administration’s ongoing crackdown on waste, fraud, and abuse in the U.S. welfare system. By removing fraudulent claimants from the system, funds are freed up for families who actually require childcare services and subsidies. |
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