12 Charged in Alleged $10M San Diego Childcare Fraud

Twelve people were charged in San Diego with allegedly collecting more than $10 million in childcare subsidies through home-based facilities that prosecutors say often had no children. More than 250 federal, state and local officers arrested the defendants early Thursday and executed 12 search warrants at the homes. Charges were unsealed Tuesday, Sept. 15, 2026, by the Justice Department and IRS Criminal Investigations. The defendants are naturalized citizens or lawful permanent residents from Syria, Somalia, Sudan, Afghanistan and Iraq. At a news conference, Colin McDonald said, "There were no children." He also said, "There were no daycares. But the taxpayers were paying for all of it." Todd Blanche called them "Completely bogus daycare facilities." Prosecutors allege Turkiya Alawad, 63, was outside the U.S. Jan. 1–30, 2024, while submitting and collecting payments for that period, and that Abdulrahman Alawad, 25, received more than $300,000 in 2025 though surveillance allegedly showed children entering only on a state inspection day. Some defendants allegedly collected more than $1 million. Jared Koopman said proceeds went to luxury homes, overseas wire transfers and large cash withdrawals, and that diverting the funds means families, honest providers and taxpayers lose. The DOJ fraud enforcement division was created in April; this is its first indictment of this type. The investigation continues. What is contested: none exists on the core charging facts. No left-rated coverage is in the record.