Prosecutors say licensed home childcare operators submitted false attendance records to collect subsidies intended to help low-income families.
SAN DIEGO, CA — Federal authorities have charged 12 San Diego County residents in separate fraud cases accusing them of collecting more than $10 million in government-funded childcare payments for home daycare services that prosecutors say often were not provided.
The Justice Department announced the charges Sept. 15 after authorities arrested all 12 defendants and searched a dozen homes during a coordinated operation Sept. 10. More than 250 federal, state and local law enforcement personnel took part, according to prosecutors. The defendants operated licensed home childcare facilities in San Diego and El Cajon and are accused of submitting false attendance records to programs that subsidize childcare for qualifying families.
Federal prosecutors said the operators registered with Child Development Associates and the YMCA, which administer childcare assistance payments for eligible families. Providers were required to submit monthly records showing the dates and times children received care. The government alleges the defendants instead certified false attendance information and received federal money based on those records. The criminal complaints are separate cases, even though several defendants share surnames, authorities said.
The defendants are Fosiya Mohamoud, 50; Abdulrahman Alawad, 25; Zetun Abdi, 43; Ikramullah Mohmmand, 25; Khetam Haouash, 37; Khatera Hashimi, 39; Mariam Khamis, 42; Mohamad Alawad, 29; Mazin Alawad, 22; Turkiya Alawad, 63; Zaryab Daudzai, 25; and Cezar Yaqoob, 36. They face wire fraud charges, and some also face money laundering charges. Criminal complaints contain allegations, and the defendants are presumed innocent unless proven guilty.
Investigators said surveillance at some licensed daycare homes showed activity that sharply differed from attendance records submitted for payment. Prosecutors allege Abdulrahman Alawad reported caring for 23 children in March 2026 and 25 children in April and claimed he provided care every day during both months. According to the complaint, surveillance covering 57 days showed children entering or leaving the property on only one day, when a state inspector arrived for an unannounced inspection.
Authorities also allege some providers submitted childcare claims while they were outside the United States. A complaint against Turkiya Alawad says border records showed she left the country around Jan. 1, 2024, and returned around Jan. 30. Prosecutors say she nevertheless submitted attendance records covering that month and later received eight deposits totaling $14,970 from Child Development Associates and the YMCA.
The amounts paid to individual defendants ranged from about $538,000 to $1.2 million over periods ranging from months to years, according to the Justice Department. Prosecutors said several defendants received more than $1 million each. Abdulrahman Alawad allegedly received more than $300,000 from San Diego County, Child Development Associates and the YMCA during 2025 alone.
Federal investigators allege some of the money was used for personal expenses, including luxury real estate, overseas wire transfers and large cash withdrawals. IRS Criminal Investigation helped trace the payments as part of the inquiry. The subsidy programs involved are designed to help eligible low-income families pay for childcare while parents work, attend school or meet other program requirements.
Wire fraud carries a potential maximum federal prison sentence of 20 years if a defendant is convicted. Prosecutors said not every defendant faces a money laundering count, and any sentence would ultimately depend on the charges, facts of an individual case and decisions by the court. The investigation remains active, and federal officials said additional fraud investigations are continuing.
Author note: Last updated September 16, 2026.