Day care and child care fraud

What prosecutors have alleged

On September 15, 2026, the Office of Public Affairs announced that twelve people were charged in schemes involving more than $10 million intended to help low-income families pay for child care. The release says these are charges. A charge is not a conviction. ¹ Source 1

The release says HHS provides federal funding to California for that care. In San Diego County, the county, Child Development Associates, and the YMCA administer the subsidies and pay providers after monthly attendance records. The records must be signed by the provider and the parent under penalty of perjury and must show dates and times of care. ¹ Source 1

The complaints, as the release describes them, allege that the defendants had state licenses and were enrolled with those administrators, then submitted attendance records for care they did not provide and certified the records under penalty of perjury. The release says surveillance conflicted with the records. It says each defendant received between $538,000 and $1.2 million over periods ranging from months to years. The charge listed is wire fraud under 18 U.S.C. § 1343, with a statutory maximum of twenty years in prison and a $500,000 fine. That maximum is not a sentence. ¹ Source 1

Which published programs may apply

The Justice Department’s October 20, 2026 reward pages list day care among the subjects the program emphasizes. The early award those pages describe is $10,000 to $30,000, in the Department’s discretion, if a qualifying tip leads to unsealed criminal charges. The September 2026 cases were already charged. A reward decision in those cases is not announced in the charging release. ¹ Source 1 ² Source 2 ³ Source 3

Where the money is federal, a civil False Claims Act theory can also be part of the public record in other benefit cases. The September 2026 release itself announces criminal wire-fraud charges, not a qui tam settlement. Read the statute that matches the proceeding. Do not add the two award formulas together. ¹ Source 1 ⁴ Source 4

Where to report

The Department’s portal for the fraud reward is America.gov/fraud. The Civil Division also describes reports to an inspector general or the FBI, and sealed qui tam complaints for false claims. This site does not collect tips. ² Source 2 ⁵ Source 5 ⁶ Source 6