Twelve individuals from Syria, Afghanistan, Sudan, Iraq, and Somalia have been arrested in connection with an alleged daycare fraud scheme, accused of misappropriating over $10 million in taxpayer-funded childcare subsidies. On Thursday, more than 250 federal, state, and local law enforcement officials executed 12 search warrants at residences in San Diego that were purportedly operating as daycare facilities.
Attorney General Todd Blanche described the facilities as 'completely bogus.' Federal prosecutors allege that the defendants obtained California licenses for home childcare facilities registered with Child Development Associates and the YMCA, then submitted fraudulent attendance records to collect government payments for children they allegedly did not care for.
Providers were required to document the dates and times children were in their care and certify the records under penalty of perjury. Investigators indicated that surveillance footage contradicted the claims made by the defendants. For instance, Abdulrahman Ayman Alawad allegedly reported providing childcare every day in March and April 2026 for 23 children in March and 25 in April, but surveillance over 57 days showed children entering or leaving his facility on only one day, which coincided with a state inspector's unannounced visit.
In another case, Turkiya Mamdouh Alawad allegedly left the country around January 1, 2024, returning around January 30, yet submitted January attendance records and received eight deposits totaling $14,970 from CDA and YMCA. Each defendant reportedly collected between $538,000 and $1.2 million over various periods.
Alawad allegedly received more than $300,000 in 2025 alone, while several defendants reportedly collected over $1 million each. Special Agent in Charge Robb R. Breeden stated, 'Shameless attempts to steal taxpayer-funded childcare funds for personal gain endanger support for some of our nation’s most vulnerable children.'
The 12 complaints are unrelated cases, but authorities allege they followed a similar pattern of bogus attendance claims and government payments, resulting in millions of dollars being diverted from programs intended to assist low-income families with childcare costs. All defendants, aged between 22 and 63, face wire fraud charges, which carry a maximum penalty of 20 years in prison and a $500,000 fine. Some also face money-laundering charges with the same maximum penalties.