San Diego daycare fraud scheme leads to 12 arrests

Twelve individuals have been arrested in San Diego for an alleged $10 million daycare fraud scheme known as ‘Operation Cradle to Grift’. Federal, state, and local law enforcement officials executed search warrants at residential locations that were falsely listed as daycare facilities.

The defendants, who include naturalized citizens and lawful permanent residents originally from Syria, Somalia, Sudan, Afghanistan, and Iraq, are charged with federal wire fraud. Some also face money laundering charges. If convicted, they could face up to 20 years in federal prison and $500,000 in fines.

The fraudulent billing targeted funds provided by the U.S. Department of Health and Human Services, which assists low-income families with childcare costs. Investigators stated that the fake sites provided no actual childcare services, effectively diverting taxpayer money intended for vulnerable families.