We’ve heard of drug rings and prostitution rings, but child care rings? Yes…they exist too. According to The Mercury News, a California man was found guilty of six counts of perjury and five counts of grand theft in connection with a case involving home-based child care centers that defrauded taxpayers of more than $1 million.
The article notes that the man used home-based child care centers to provide monetary kickbacks to over three dozen welfare recipients. Here’s how the scam worked: he set up four home-based child care centers and listed family members and friends as child care providers for each of the centers. The article noted that investigators found that many of the child care centers were licensed to serve up to 14 children; however, they were only sufficient to serve up to six. (Amazing that there were any children at all.) In addition, they found some of the children which were allegedly being cared for did not even live in the state of California. (Imagine that…someone using phony information to perpetrate fraud! Either that or out-of-state commuting is all the rage in child care these days!)
So how exactly did he provide proof of attendance? He operated his scam from an office in South Los Angeles, where those individuals who received the aid could sign an attendance sheet and pick up their paychecks.
It is interesting to find the child care ring system to be so faulty – perhaps it was the long distance commuting that tipped off authorities? Now the man is facing up to 14 years in prison. (Maybe he can think of it as his own personal daycare…with a twist.)