Childcare Fraud - New York News

FOX 11 Investigative

Childcare Fraud

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Government subsidized Child care programs are designed to help people get off welfare but as our FOX 11 Investigative team reports,  scammers are using the program to fatten up their wallets.

Childcare fraud is costing taxpayers hundreds of thousands of dollars every year. Right now, the LA District Attorney's office is prosecuting a case involving 20 defendants. When we tried to get answers from the suspects, one of them ran away from our cameras and her friends blocked us from going after her.

Bill Clark, an LA County Deputy DA with the Fraud Division says the case FOX 11 is exposing, has cost taxpayers $1.6 million dollars.  Clark says the suspects stole the money that belongs to a federal and state childcare program that was established to provide free daycare to people who want to work and get off welfare. The more children a daycare provider  has, the more money it gets from the government. The problem in this case... there were no children to take care of and no parents working to get off welfare.

All of the suspects face multiple counts of fraud, theft and perjury. They have plead not guilty.

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