Child Care Fraud Defense Lawyer

Protecting Day Care Providers, Facility Owners, and Administrators Accused of Program Fraud

In New York City, thousands of families rely on subsidized child care services funded by government programs like Child Care Assistance (CCA), Head Start, and EarlyLearn NYC. But with increasing oversight from city, state, and federal agencies, many legitimate child care providers now find themselves facing serious allegations of fraud, including billing irregularities, misrepresentation of attendance, and false subsidy claims.

At Sosinsky Law, we represent day care owners, facility directors, administrators, and service coordinators who are under investigation or prosecution for child care fraud. With decades of experience in fraud defense, we know how to navigate complex regulatory systems, dispute government audits, and aggressively defend our clients against criminal charges.

If you’ve received a subpoena, audit notice, or target letter, or if you’ve been contacted by investigators from the Administration for Children’s Services (ACS), Department of Investigation (DOI), or other government agency, contact Sosinsky Law immediately. Early legal intervention can mean the difference between a resolved issue and criminal charges.

What Is Child Care Fraud?

Child care fraud typically involves allegations that a provider intentionally submitted false or misleading information to obtain government funds under a child care subsidy program. These allegations can stem from billing practices, false attendance records, improper staffing, or misrepresentation of a child’s or family’s eligibility. Common examples of child care fraud include:

• Billing for children who were not actually in attendance
• Overstating the number of hours or days a child received care
• Using false or forged attendance logs
• Enrolling fictitious children or using false identities
• Double billing multiple programs (e.g., EarlyLearn and Head Start)
• Operating without appropriate licenses or staff qualifications
• Accepting kickbacks or bribes in exchange for enrollment or referrals
• Misclassifying employees or failing to meet adult-child ratio requirements

Even small discrepancies—if repeated or documented across multiple children—can lead to allegations of intentional fraud, resulting in civil penalties, criminal charges, and exclusion from future program participation.

Programs Commonly Involved in Fraud Allegations

In New York City, child care fraud allegations often involve providers operating under or participating in one or more of the following programs:

• New York City Child Care Assistance (CCA)
• EarlyLearn NYC
• Head Start and Early Head Start
• Universal Pre-Kindergarten (UPK)
• New York State Child Care Block Grant (CCBG)
• Administration for Children’s Services (ACS) contracted programs
• Office of Children and Family Services (OCFS) regulated centers

These programs involve strict compliance requirements related to attendance documentation, staff training, child eligibility, and billing submissions. The city and state regularly audit providers and refer suspected cases of fraud to the New York City Department of Investigation (DOI), ACS Office of Program Integrity, and even federal agencies such as the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).

Who Can Be Charged with Child Care Fraud?

Investigators don’t only target program owners—they often cast a wide net that includes:

• Day care center owners and operators
• Facility directors and site managers
• Administrative staff and billing coordinators
• Bookkeepers and payroll personnel
• Social service agencies contracting with child care programs
• Employees accused of falsifying time sheets or attendance logs
• Parents allegedly involved in collusive subsidy fraud

If the government believes there is a conspiracy or pattern of intentional misconduct, multiple people within the organization may be named as defendants in a state or federal indictment.

Criminal and Civil Penalties for Child Care Fraud

Depending on the amount of loss claimed by the government and the nature of the alleged fraud, providers may face:

• Felony charges under New York Penal Law, including:
  • Grand Larceny
  • Offering a False Instrument for Filing
  • Falsifying Business Records
  • Scheme to Defraud
• Federal charges, such as:
  • Wire fraud (18 U.S.C. § 1343)
  • Healthcare or program fraud (18 U.S.C. § 1347)
  • Conspiracy to commit fraud (18 U.S.C. § 371)
  • Theft of government funds (18 U.S.C. § 641)
  • False Claims Act violations (civil and criminal)

Potential consequences include:

• Significant prison time (up to 20 years in some federal fraud cases)
• Restitution and treble damages
• Loss of licenses and disqualification from city/state programs
• Seizure of business assets and accounts
• Civil monetary penalties and fines
• Reputational harm that can destroy a center’s viability

Even providers who are not ultimately charged may face devastating effects from investigations, including frozen payments, suspended contracts, and publicized findings.