Skip to main content
Press Release

Owner And Director Of Eden Prairie Daycare Center Sentenced For Theft Of Public Money

For Immediate Release
U.S. Attorney's Office, District of Minnesota

United States Attorney Andrew M. Luger today announced the sentencing of KHADRA ABDISAFAD HIRSI, 47, to one year and one day in federal prison for stealing money in the form of child care subsidies from the U.S. Department of Health and Human Services and the State of Minnesota. HIRSI was charged on January 23, 2015, and pleaded guilty on February 4, 2015, to one count of theft of public money. The defendant was sentenced today before Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn.

According to her guilty plea and documents filed in court, HIRSI was the director and co-owner of Ace DayCare Center, Inc. (Ace DayCare) in Eden Prairie, Minn. Many of the families for whom Ace DayCare provided childcare services participated in the Child Care Assistance Program, which provides low-income families with childcare assistance. HIRSI was responsible for submitting truthful and accurate billing forms for childcare services provided by Ace DayCare to families participating in the Child Care Assistance Program. Under the Child Care Assistance Program, child-daycare providers submit billing forms for reimbursement directly to the counties where qualifying families reside.

According to documents filed in court, from at least November 2011 through May 2013, HIRSI knowingly submitted Child Care Assistance Program billing forms that falsely inflated the number of children who received childcare services provided by Ace DayCare. As a result, HIRSI defrauded the U.S. Department of Health and Human Services and the State of Minnesota out of $300,000.

“When people steal from this program, children are deprived of quality child care and all Minnesotans suffer,” said Jerry Kerber, Minnesota Department of Human Services inspector general. “The sentence imposed today recognizes the seriousness of this crime and should deter others from committing fraud against this important public program. DHS is grateful for the cooperation and hard work of the many agencies in this case and we will continue to work together to aggressively target fraud in public programs.”

This case resulted from an investigation conducted by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services – Office of Inspector General.

U.S. Attorney Luger thanked the Minnesota Department of Human Services for their assistance.

This case was prosecuted by Assistant U.S. Attorney John E. Kokkinen.


Defendant Information:


Eden Prairie, Minn.


  • Theft of Public Money, 1 count


  • 1 year and 1 day in prison
  • Two years supervised release
  • $300,000 in restitution




Additional news available on our website.

Follow us on Twitter and Facebook.

United States Attorney’s Office, District of Minnesota: (612) 664-5600

Updated August 6, 2015