DA says child-care facilities were a scam

More than 50 people were charged in a $3 million child-care scam that involved setting up bogus child-care facilities in order to receive state funds, the Los Angeles district attorney announced today.

Demetrius Eugene, 36, the alleged ringleader, is accused of setting up six bogus child-care facilities under the name Home Sweet Home Day Care Inc. and listing family members and friends as child-care providers, Dist. Atty. Steve Cooley said. Eugene and other alleged operators of the scam also recruited welfare-qualified individuals in order to collect state money.

The "welfare-to-work" candidates signed fake attendance sheets at the ring's headquarters in Los Angeles and in return received roughly $300 per child, authorities said. At most of the facilities, there was no evidence that child-care services were ever provided.

Among those charged in the case was Kmond Day, 32, who received his child-care license from a state agency shortly before he was convicted of drug trafficking and sent to prison. Day and his wife ran an operation that received more than $400,000 in state funds, authorities said.

Programs funded by the California Department of Education receive less oversight and are more vulnerable to fraud than programs backed by the county, authorities said.

About 20 people were arrested today in connection with the case, including some out of state. Five people were picked up in Las Vegas, Texas, and Pennsylvania and will be extradited, officials said.

Deputy Dist. Atty. James Baker, who worked on the case, said the ring is only one of hundreds of child-care fraud operations that are referred each year to the county Department of Public Social Services.

"This might be one of the most sophisticated," he said.

victoria.kim@latimes.com