Friday, September 21, 2018

How The Daycare Fraud Scheme Works





Minnesota, remember the daycare fraud investigation that revealed suitcases full of cash were leaving the Minneapolis airport for North Africa and the Middle East? Many wondered just how the daycare fraud is perpetrated. Here's what I know:
1) The so-called "working" parents will apply for daycare assistance for each child. That amounts to a benefit of roughly $1,000 per month, per child. That means a family with 8 children will receive a daycare benefit of $8,000 per month or $96,000 per year, paid for by Minnesota taxpayers.
2) Another "community" member will open a daycare facility. They will hire the MOTHER of the eight children as an "employee."
3) The mother will work at the daycare facility for minimum wage for a maximum of 25 hours per week caring for HER OWN CHILDREN so that she can prove she is "working" and qualifies for daycare assistance.
4) The daycare facility will bill the state $8,000 a month for caring for her 8 children - and pay the mother $800 a month in income for caring for HER OWN CHILDREN - and pocket the rest. Often, much of that money will be sent back to their country of origin. Some critics believe the parents receive additional kick-backs for their participation. Or, sometimes, there aren't ANY children AT ALL...the facility is empty...and the state is billed for non-existent children.
5) Because the mother works only 25 hours a week, she is still entitled to free healthcare through Medicaid or ObamaCare, free food stamps, cash assistance, daycare assistance and subsidized housing for up to 10 years. Meanwhile, Minnesota-born citizens wait in line.
6) The daycare facility will often build a kitchen and call it a "restaurant" and hire workers (mothers of more children who receive free daycare) to feed all the families.
7) The daycare facilities are not open to "everybody" and are often full.
8) If the family has subsidized housing, the low wage she is being paid at the "daycare" facility will ensure they are qualified to continue to receive subsidized housing or Section 8 FOREVER.
9) New refugees are trained in on the scheme when they arrive and are taught how to manipulate and maximize the system. This is an international scam - which has been going on in Australia and the UK for over a decade. Minnesota spends $13 billion on welfare benefits every year, and some $250 million of that is just on daycare assistance alone.
10) Ilhan Omar and Keith Ellison are both complicit in the scheme calling for lawmakers to not investigate and to avert their eyes. Left unchecked, welfare fraud will bankrupt Minnesota.