Federal authorities charged 12 people in California on September 15, 2026, with fraud tied to more than $10 million in childcare subsidy payments diverted from low-income families.
The U.S. Department of Justice said the defendants allegedly ran home daycare facilities that had no children in attendance, collecting government payments meant to help low-income families cover childcare costs. The funds were funneled to fictitious providers rather than legitimate childcare services.
A federal investigation uncovered the scheme, the Justice Department said. ABC News also reported the charges, with both outlets placing the number of defendants at 12.