Federal Fraud Charges Filed Against San Diego Residents

In a significant legal action, 12 residents of San Diego, originally from various countries, are facing federal charges linked to a fraudulent scheme that misappropriated over $10 million intended for low-income childcare services. This information was released by the Department of Justice (DOJ).

On Tuesday, the U.S. Attorney’s Office for the Southern District of California reported that a large operation conducted last Thursday saw more than 250 officials from federal, state, and local law enforcement arrest the suspects after executing search warrants at their residences in San Diego.

The U.S. Department of Health and Human Services allocates federal funding to assist low-income families with childcare expenses. In San Diego County, this funding is managed by local organizations, including Child Development Associates (CDA) and the Young Men’s Christian Association (YMCA).

The DOJ claims that the individuals involved acquired California licenses to run home childcare facilities, purportedly to provide subsidized childcare to eligible families. To receive government funding, they were mandated to submit monthly records of attendance, specifying the dates and times they claimed to care for each child.

However, instead of genuine reports, they submitted falsified attendance records and, under penalty of perjury, falsely certified their accuracy.

All twelve defendants hold U.S. citizenship or green cards and emigrated from countries such as Syria, Somalia, Sudan, Afghanistan, and Iraq. It’s noteworthy that nine of them had initially sought refuge in the United States.

“Anyone who steals from programs meant to support children will face swift and uncompromising accountability,” stated Assistant Attorney General Colin M. McDonald from the DOJ’s National Fraud Enforcement Division. “Fraud against these programs is an attack on vulnerable families, and law enforcement will continue to dismantle schemes that exploit them.”

“Today is a bad day for home daycare fraud,” remarked U.S. Attorney Adam Gordon. “These are the first charges alleging this type of fraud since the formation of the National Fraud Enforcement Division. While these fraudsters may have thought they could game the system before, today marks the end of their game.”

The DOJ released a list of the defendants:

• Fosiya Mohamoud, 50, of El Cajon;
• Abdulrahman Alawad, 25, of El Cajon;
• Zetun Abdi, 43, of San Diego;
• Ikramullah Mohmmand, 25, of El Cajon;
• Khetam Haoash, 37, of El Cajon;
• Khatera Hashimi, 39, of El Cajon;
• Mariam Khamis, 42, of San Diego;
• Mohamad Alawad, 29, of San Diego;
• Mazin Alawad, 22, of San Diego;
• Turkiya Alawad, 63, of San Diego;
• Zaryab Daudzai, 25, of El Cajon;
• Cezar Yaqoob, 36, of El Cajon.

Surveillance footage revealed discrepancies between the claimed attendance and actual activity at the facilities, as stated in the federal complaints.

For instance, Abdulrahman Alawad reported caring for 23 children daily in March and 25 in April. Yet, recordings from 57 days showed children’s entry or exit from his facility on only a single day — when a state inspector happened to be present.

Additionally, some of the defendants asserted they provided childcare during times when they were actually abroad, according to border crossing records. For example, Turkiya Alawad’s records indicated she departed the U.S. around January 1, 2024, returning around January 30, yet she managed to submit attendance records and received eight payments totaling $14,970 from the CDA and YMCA.

The documents reveal that each defendant gained between $538,000 and $1.2 million over varying timeframes ranging from months to years.

“By following the money, the IRS Criminal Investigation uncovered patterns of deceit that revealed twelve ghost daycare operations billing for children who were never present. This was not a victimless crime. It deprived working parents of crucial support and eroded trust in programs meant to protect our vulnerable communities,” commented IRS Criminal Investigation Chief Jarod Koopman.

These twelve individuals face multiple federal charges, primarily including:

• Wire Fraud: Prosecutors allege they knowingly provided false attendance records and certifications electronically to the CDA and YMCA to collect government subsidies for children who were, in fact, not in attendance.

• Money Laundering: Federal agents maintain that the money gained from fraudulent claims was laundered through large cash withdrawals, international wire transfers, and the purchase of luxury items and real estate.