Feds bust 12 in $10 Million San Diego ‘ghost daycare’ scheme siphoning taxpayer-funded childcare benefits

Twelve people have been charged in an alleged $10 million fraud scheme that federal prosecutors say used bogus home daycare operations to siphon taxpayer-funded childcare benefits intended for low-income families.

Federal authorities arrested all 12 defendants during a coordinated San Diego-area operation involving more than 250 federal, state, and local law enforcement personnel. Investigators also executed 12 search warrants at homes purportedly operating as daycare facilities. The defendants are naturalized US citizens or lawful permanent residents originally from Syria, Somalia, Sudan, Afghanistan, and Iraq, according to the Department of Justice.

Prosecutors allege the defendants operated what investigators described as “ghost daycare operations,” submitting attendance records for children who were allegedly not actually receiving care. ---More...

BREAKING: THEY ALLEGEDLY BILLED TAXPAYERS FOR DAYCARE WHILE THEY WEREN’T EVEN IN AMERICA.

The DOJ has charged 12 people in Southern California in alleged “ghost daycare” schemes that prosecutors say siphoned more than $10 MILLION from programs meant to provide childcare for…

— Real America's Voice (RAV) (@RealAmVoice)September 15, 2026

THEY ALLEGEDLY BILLED TAXPAYERS FOR DAYCARE WHILE THEY WEREN’T EVEN IN AMERICA.

The DOJ has charged 12 people in Southern California in alleged “ghost daycare” schemes that prosecutors say siphoned more than $10 MILLION from programs meant to provide childcare for low-income families.

Investigators say some defendants claimed children were receiving care even while the providers themselves were outside the United States.

One defendant allegedly claimed to care for 23–25 children every day across two months — but surveillance showed children at the facility on just ONE of 57 days observed.

The defendants face federal wire-fraud charges, with some also charged with money laundering.

DOJ: “Today, the game is over.”