Twelve California childcare providers are facing federal charges after prosecutors accused them of collecting more than $10 million from programs intended to help low income families pay for daycare that was not actually provided as claimed.
Federal authorities arrested all 12 defendants and executed search warrants at 12 San Diego area homes identified as licensed childcare facilities. More than 250 federal, state and local law enforcement personnel participated in the coordinated operation, according to KSAT.
The providers were registered with Child Development Associates and the YMCA, which administer subsidized childcare payments in San Diego County. Prosecutors say the organizations issued federal funds after receiving monthly attendance records that falsely certified when eligible children had received care.
Each defendant faces a separate federal complaint. All 12 are charged with wire fraud, while some also face money laundering charges. The allegations have not resulted in convictions, and every defendant is presumed innocent unless proven guilty.
Surveillance Showed Almost No Children at One Daycare
One complaint focuses on Abdulrahman Ayman Alawad, 25, of El Cajon. He reported caring for 23 children throughout March 2026 and 25 children throughout April, with attendance records claiming childcare was provided every day during both months.
Investigators compared those submissions with surveillance covering 57 days. According to the U.S. Attorney’s Office for the Southern District of California, children were seen entering or leaving the property on only one day.
That day coincided with an unannounced visit from a state inspector. Prosecutors say Alawad and children arrived at the property only after the inspector had already reached the home.
Border Records Showed Some Providers Were Outside the United States
Federal investigators also compared attendance submissions with border crossing records to determine whether providers were present on dates they claimed to be operating childcare from their homes.
One complaint accuses Turkiya Mamdouh Alawad, 63, of San Diego, of submitting January 2024 attendance records even though border records showed she left the United States around January 1 and did not return until approximately January 30.
After those records were submitted, CDA and the YMCA issued eight direct deposits totaling $14,970 in February, prosecutors say.
Individual Providers Allegedly Received Up to $1.2 Million
The federal complaints cover different periods ranging from months to years. Prosecutors say individual defendants received between approximately $538,000 and $1.2 million through subsidized childcare payments.
Abdulrahman Alawad received more than $300,000 from San Diego County, CDA and the YMCA during 2025 alone, according to the government. Several other defendants are accused of receiving more than $1 million each.
The other defendants are Fosiya Mohamoud, Zetun Abdi, Ikramullah Mohmmand, Khetam Haouash, Khatera Hashimi, Mariam Khamis, Mohamad Alawad, Mazin Alawad, Zaryab Daudzai and Cezar Yaqoob.
Wire fraud carries a maximum statutory penalty of 20 years in federal prison. Defendants facing money laundering charges could also face up to 20 years on those counts if convicted.
Providers Had to Certify When Children Were Actually in Their Care
California receives federal funding to help qualifying families pay for childcare. In San Diego County, organizations including CDA and the YMCA determine eligibility and make payments directly to participating providers.
Providers must submit monthly records documenting the dates and times each child received care. Those attendance records are certified under penalty of perjury and are used to determine how much public money should be paid.
California law also generally requires licensed family childcare providers to be present and supervise children, with limited exceptions when a qualified substitute is available during a temporary absence.
How Suspected Childcare Subsidy Fraud Can Be Reported
The California Department of Social Services accepts reports involving suspected misuse of childcare subsidies. The agency identifies falsified attendance logs, payments for services that were never provided, identity misuse and providers operating from unreported locations as examples of conduct that can be reported.
Parents should review attendance records before signing them and make sure the dates and hours reflect when their child was actually in care. They should not certify attendance for days when services were not provided.
A report to CDSS can include the provider or facility name, address, license number, date of the suspected activity and a description of what occurred. Supporting documents or other information can also be provided when available.
CDSS reviews submitted reports and refers them to the appropriate program for further examination. Suspected childcare subsidy fraud can be reported by emailing ChildCareSubsidyFraud@dss.ca.gov.