Missouri: Somali Day Care Owner Sentenced for Ripping Off Taxpayers in Lucrative Fraud Scheme

Thanks to reader Joanne for alerting me to this news from a week ago about the sentencing of a Somali ‘new American’ in a day care fraud scheme that cheated taxpayers out of a half a million dollars.

I’m posting almost the entire Justice Department press release because it is chock full of information about how he operated the scam and how the feds nabbed him.

 

Screenshot (104)
BUSTED!

(Emphasis below is mine!)

KC Day Care Owner Sentenced for $556,000 Fraud Scheme

 

KANSAS CITY, Mo. – The owner of a Kansas City, Missouri, day care center was sentenced in federal court today for his role in a conspiracy to fraudulently receive more than $556,000 in federal benefits.

Sharif Karie, 41, of Olathe, Kan., was sentenced by U.S. District Judge Brian C. Wimes to four years and 10 months in federal prison without parole.

On Jan. 11, 2019, Karie was convicted at trial of participating in a conspiracy to steal government property, theft of government property, three counts of aggravated identity theft, three counts of wire fraud, 15 counts of money laundering, and six counts of mail fraud.

Can you believe it!  The feds are not making us play the secret decoder ring game and have actually said where the crook is from!

Karie, a naturalized U.S. citizen from Somalia, was the owner and CEO of a day care center established under two businesses and two names for the same location, with the same key employees: KARIE Day Care Center, LLC, and Tima Child Care Center, LLC, at 1019 Admiral Blvd., Kansas City, Mo. Tima Child Care Center was established under false pretense with a straw owner, according to court documents, apparently to circumvent the state’s oversight efforts.

Co-defendant Sheri Beamon, 48, of Kansas City, Missouri, was the director of KARIE/Tima Childcare Center. Beamon pleaded guilty on Sept. 10, 2018, to her role in the conspiracy and will be sentenced on Aug. 15, 2019.

The day care centers submitted false childcare claims to the state of Missouri that fraudulently inflated the number of hours and children who actually attended the childcare centers. The conspiracy, which lasted from October 2013 to June 2016, resulted in a loss of $536,833 to the Missouri Department of Health and Social Services.The Child Care and Development Fund provides daycare subsidies for low-income families where the parents are employed or engaged in job training. Providers contract with the Children’s Division of the Missouri Department of Health and Senior Services and submit claims electronically.

Additionally, Karie committed fraud by misleading the Department of Housing and Urban Development (HUD) when he understated his income and assets. Karie received Section 8 assistance, which is funded by HUD. The fraud scheme resulted in a loss of more than $40,000 to the Housing Authority.

You will be happy to see this next bit of information:

This case was the result of a nationwide sweep that targeted child care center fraud schemes. The national law enforcement operation in Missouri and six other states was the result of separate, but related, federal investigations into childcare center fraud that resulted in a loss of more than $1 million to the government.

Clever feds!  I love this:

Pole cameras, which were installed near the day care center, captured footage of the entrances and exits of the building during two time periods in 2015 and in 2016.

Timesheets and billing records were reviewed and compared to the children seen on the pole cameras being dropped off and picked up from the daycare center during that time. There were significant discrepancies between the timesheets, claims submitted, and the pole camera footage. According to court documents, even the fire evacuation records were falsified indicating a fire drill was performed on a date when pole cameras were capturing footage of the entrance/exit of the day care and the planned evacuation route as provided to the state. The drill never took place.

At no time during its operation, according to court documents, did Karie Day Care Center meet the minimum health and safety standards for operation as established by Missouri statute and agreed to by contract. Tima Child Care Center was conceived as the state was in process of shutting down Karie Day Care Center for failure to comply with standards for health, safety, and record keeping. Had the state known that Karie was actually operating the business, according to court documents, a license would not have been approved.

Parents were being paid to care for their own kids on the taxpayers’ dime:

The state conducted a compliance review of the daycare center’s billing for May 2014 and July 2014. The review found several attendance records missing. The review also identified 14 out of the 15 families with children at the center who had a parent employed there. With only two classrooms, it is improbable that parents were not caring for their own children. One of these parents reported that her job was contingent on having all of her children placed in care at KARIE Day Care Center so her child care would be paid by the state. According to court records, nearly all children enrolled for services were those of employees, in violation of state regulations.This same 2014 audit found several discrepancies on the time sheets submitted to the state.

Subsequent unannounced inspections at KARIE Day Care Center found the facility in violation of state regulations pertaining to child care licensing rules, including health and safety, staff ratios, and the maintaining of attendance records. Each of the inspections resulted in violation findings.

LOL!  Just another example of how immigrant (new American!) entrepreneurs benefit the US economy (NOT!). 

This is a story worth spreading far and wide!

This post is filed in my ‘Daycare fraud’ category, here.

Memory Lane: Overload the American Welfare System and Bring on the Revolution

It has been ten years since I wrote the post below at Refugee Resettlement Watch and it occurs to me that there may be some of you scratching your heads and wondering why anyone would want to open our borders and welcome in hordes of impoverished people and put them on taxpayer-funded welfare.

And, you might be wondering why the reaction to the Trump Administration’s very sensible plan to block welfare use for non-citizens announced this past week, see here, is causing Leftwingers heads to explode.

heads explode
Progressives react to Trump welfare restrictions.

The strategy was once well-known to hardcore Socialists/Communists (aka Progressives) as the Cloward-Piven strategy, but I suspect following generations of young do-gooders and average Americans who have simply been busy working and raising families have no idea that importing poverty is a political strategy.

If you know all about Cloward and Piven, you won’t find anything new here, but for those of you who have never heard those names, please continue reading!

Here is my post from November 2009,

Cloward-Piven: Use the poor to bring on the revolution

 

Screenshot (1078)
Piven lives on, but Cloward passed away in 2001.

If you are a regular reader, you know one of the themes we have been writing about is what I call “community destabilization,” we have a whole category for those posts.

And, you know we write about the Cloward-Piven strategy as part of that discussion.

Cloward and Piven, while professors at Columbia University (Obama’s alma mater), penned a 1966 treatise in Nation magazine in which they outlined a strategy to bring about a revolution in America. I wrote about it most recently, here [Sorry links are dead since the speech police took down RRW, but I am working on getting it restored—ed]

Simply stated the strategy involved flooding the welfare system with so many impoverished people that the system would collapse and that would pave the way for a new form of government—a government that would redistribute the wealth and provide a guaranteed income for everyone.

Below is another shocking segment from that article.  We are often lectured about what is the moral thing to do about refugees, but let me ask all of you, what is moral about this Far Left strategy?

Remember immigrants and refugees are today’s poor.  As unfashionable as the word is, frankly, I call this strategy to place as many people as possible on the welfare system and use them for promotion of a radical political ideology downright evil.*  (Emphasis below mine.)

From The Nation,

To generate an expressly political movement, cadres of aggressive organizers would have to come from the civil rights movement and the churches, from militant low-income organizations like those formed by the Industrial Areas Foundation (that is, by Saul Alinsky), and from other groups on the Left. These activists should be quick to see the difference between programs to redress individual grievances and a large-scale social-action campaign for national policy reform.

Movements that depend on involving masses of poor people have generally failed in America. Why would the proposed strategy to engage the poor succeed?

First, this plan promises immediate economic benefits. This is a point of some importance because, whereas America’s poor have not been moved in any number by radical political ideologies, they have sometimes been moved by their economic interests. Since radical movements in America have rarely been able to provide visible economic incentives, they have usually failed to secure mass participation of any kind. The conservative “business unionism” of organized labor is explained by this fact, for membership enlarged only as unionism paid off in material benefits. Union leaders have understood that their strength derives almost entirely from their capacity to provide economic rewards to members. Although leaders have increasingly acted in political spheres, their influence has been directed chiefly to matters of governmental policy affecting the well-being of organized workers. The same point is made by the experience of rent strikes in Northern cities. Their organizers were often motivated by radical ideologies, but tenants have been attracted by the promise that housing improvements would quickly be made if they withheld their rent.

(Remember these are Cloward and Piven’s words!)

Second, for this strategy to succeed, one need not ask more of most of the poor than that they claim lawful benefits. Thus the plan has the extraordinary capability of yielding mass influence without mass participation, at least as the term “participation” is ordinarily understood. Mass influence in this case stems from the consumption of benefits and does not require that large groups of people be involved in regular organizational roles.  [Of course not, the smart people, the elite radicals, would call all the shots!]

Moreover, this kind of mass influence is cumulative because benefits are continuous. Once eligibility for basic food and rent grants is established, the drain on local resources persists indefinitely. Other movements have failed precisely because they could not produce continuous and cumulative influence.

When you read the Nation article, note that Cloward and Piven were very conscious of the concept of the ‘presumption of good intentions.’  In other words, they knew that this political strategy would go undetected for a very long time because it would be hidden from their average do-gooder minions by the presumption that this was all about aiding the downtrodden.

Ann Coulter 2
Ann Coulter on the strategy: Speak loudly and carry a small victim!

I must say this ‘strategy’ is the only logical explanation for why we are still pouring refugees into the US right now [2009] when there is little or no work for them and they are being “warehoused” in decrepit apartment buildings, like those in Bowling Green, KY. [Again, sorry, links to RRW are now dead.—-ed]

Incidentally, even if refugees have chicken plant jobs they still receive various forms of public assistance because the meatpackers no longer pay a living wage.

I wonder did Cloward and Piven ever anticipate the involvement of big businesses as allies in the revolution?  See this post from August in which I list strange bedfellows on the open borders issue.

* I have to laugh, after I posted this, I see [link not found—ed] that Ann Coulter also suggested Far Left Liberal strategies were “evil” when she said their motto is:  Speak loudly and carry a small victim!

The End of the November 2009 post at RRW.

I think you got my message—the border invasion (the mass movement of extreme poverty into American towns and cities) is a Progressive (Communist) political strategy and the migrants are their pawns.  (And, their future voters!)

I hope you didn’t miss the part about how they need the churches to help them pull it off!