55 arrested in L.A. child-care fraud operation

Oakland Tribune, Feb 9, 2008

LOS ANGELES -- Fifty-five people have been charged in what Los Angeles County District Attorney Steve Cooley called the largest child care fraud case in the state, allegedly costing taxpayers at least $3 million.

Authorities said Thursday that ringleaders recruited unemployed parents to sign up for jobs at bogus child care centers in exchange for a cut of welfare-to-work and child care subsidies.

Cooley said the ring, in part, was run out of federal prison by a convict serving a narcotic trafficking term.

Those charged include Kmond Day, 32, who was sentenced to federal prison for drug trafficking shortly after receiving a state-issued child care license, and his wife, Darneicea Day, 28, who authorities said ran his child care operation while he was in prison.

But even after Kmond Day went to prison, the state continued to provide funds to his center.

Day and his wife received more than $400,000 in state funds, authorities said.

Demetrius Eugene, 36, a former employee of a business unit of the California secretary of state's office, is accused of setting up six bogus child care facilities under the name Home Sweet Home Day Care Inc.

He is also suspected of setting up family members and friends as purported child care providers for the facilities.

It was unclear whether the Days or Eugene have retained attorneys.