Federal Charges Hit 12 Foreign-Born San Diego Residents in $10 Million Daycare Fraud

Clear Facts

• Twelve foreign-born San Diego residents face federal fraud charges in a scheme that diverted more than $10 million from low-income childcare programs.
• The Department of Justice states the funds were routed through fake daycare centers that never provided legitimate services.
• The case targets abuse of taxpayer-funded programs intended to assist families in need.

Twelve individuals have been charged in federal court after prosecutors uncovered a scheme that siphoned over $10 million from programs meant to help low-income families access childcare.

The Department of Justice reports the defendants submitted false claims for reimbursement through nonexistent daycare centers.

Fraudsters FOILED in San Diego.

A dozen individuals were arrested for their role in a multi-million-dollar childcare fraud scheme.

The patriots @HSI_HQ are hard at work with our @WHFraudTF partners in stopping this flagrant theft of taxpayer dollars. pic.twitter.com/bS8lMQSIKG

 — Homeland Security (@DHSgov) September 16, 2026

Officials say the fraud took advantage of federal funding streams designed to support working families.

Authorities are emphasizing the importance of protecting taxpayer resources from exploitation by individuals who entered the country from abroad.

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