- Aug 4, 2011
- 81,129
- 14,024
- 2,190
And it's money they get from the state for taking care of children.
"In order for the scheme to work, the daycare centers need to sign up low income families that qualify for child care assistance funding.
"Surveillance videos from a case prosecuted by Hennepin County show parents checking their kids into a center, only to leave with them a few minutes later. Sometimes, no children would show up.
"Either way, the center would bill the state for a full day of childcare.
"This also explains why they’re using hawalas and bags full of cash to transmit the funds — they can’t afford to explain this much cash flowing through banks. The feds recently won convictions for daycare center fraud in Minneapolis, but it appears to be just the tip of the iceberg. The state tells the local affiliate that ten more daycare centers are under investigation for fraud as well, and have “dozens” more on the radar. All of this adds up, the Fox affiliate notes, and the fraud may be siphoning off half or more of all government subsidies for day care:
"Sources in the Somali community told Fox 9 it is an open secret that starting a daycare center is a license to make money.
"The fraud is so widespread they said, that people buy shares of daycare businesses to get a cut of the huge public subsidies that are pouring in.
"Government insiders believe this scam is costing the state at least a hundred million dollars a year, half of all child care subsidies.
"So … let’s recap. Minnesota spends $100 million a year on daycare for terrorists and fraudsters."
Daycare for terrorists? $100 million in cash flies out of Minneapolis a year -- and it's your money
"In order for the scheme to work, the daycare centers need to sign up low income families that qualify for child care assistance funding.
"Surveillance videos from a case prosecuted by Hennepin County show parents checking their kids into a center, only to leave with them a few minutes later. Sometimes, no children would show up.
"Either way, the center would bill the state for a full day of childcare.
"This also explains why they’re using hawalas and bags full of cash to transmit the funds — they can’t afford to explain this much cash flowing through banks. The feds recently won convictions for daycare center fraud in Minneapolis, but it appears to be just the tip of the iceberg. The state tells the local affiliate that ten more daycare centers are under investigation for fraud as well, and have “dozens” more on the radar. All of this adds up, the Fox affiliate notes, and the fraud may be siphoning off half or more of all government subsidies for day care:
"Sources in the Somali community told Fox 9 it is an open secret that starting a daycare center is a license to make money.
"The fraud is so widespread they said, that people buy shares of daycare businesses to get a cut of the huge public subsidies that are pouring in.
"Government insiders believe this scam is costing the state at least a hundred million dollars a year, half of all child care subsidies.
"So … let’s recap. Minnesota spends $100 million a year on daycare for terrorists and fraudsters."
Daycare for terrorists? $100 million in cash flies out of Minneapolis a year -- and it's your money