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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of Kentucky

Tuesday, June 21, 2016

Louisville Daycare Owner/Operator Sentenced To 46 Months In Prison For Fraudulently Seeking Child Care Payments From Kentucky Agency

Lottie Carisa Burgos, former owner of ABC Village Daycare, falsified daycare attendance figures

and qualifications of daycare workers

Ordered to pay $1,424,929 in restitution

LOUISVILLE, Ky. –United States Attorney John E. Kuhn, Jr. announced today the sentencing of a former Louisville daycare owner by United States District Judge Greg N. Stivers, to 46 months in prison for committing wire fraud and money laundering and was ordered to pay $1,424,929.00 in restitution to the victim agency

In March of 2016, Lottie Carisa Burgos, the former owner and operator of ABC Village Daycare, pleaded guilty in United States District Court, to 18 counts of an indictment returned by a federal grand jury on July 16, 2014. 

“In committing this fraud, Ms. Burgos not only took taxpayer money intended to assist economically disadvantaged parents with childcare costs, but also placed infants and toddlers in harm’s way,” stated United States Attorney John Kuhn. “With this prosecution, we are protecting children and recovering stolen taxpayer money.  I thank the Kentucky Cabinet for Health and Family Services and the Federal Bureau of Investigation for their work on this case.” 

Burgos operated ABC Village Daycare at two locations, 1801 West Market Street, Louisville, Kentucky, and 2823 7th Street Road, Louisville, Kentucky.  According to the plea agreement, Burgos or others acting at her direction falsified a wide range of information which was a condition of payment for child care services from Kentucky’s Department for Community Based Services.  The Department for Community Based Services provides child care benefits to low-income working parents and guardians.

Burgos, or others acting at her direction, falsified the following information:  the number of children who attended the daycare centers including the number of days children attended the daycare centers and the employment status of the parents.

In addition, Burgos, or others acting at her direction, falsified records of the ABC Village Daycare employees.  Those records included high school diplomas (which are a requirement of child care staff with supervisory authority over minors), tuberculosis tests, and CPR certificates.  A false tuberculosis test and CPR certificate are requirements of child care employees for the business to receive payment from Kentucky’s Department of Community Based Services.

Burgos pleaded guilty to 12 counts of wire fraud and 6 counts of money laundering. The total loss was $1,424,929.00. 

This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Office of Inspector General for the Kentucky Cabinet for Health and Family Services and the Federal Bureau of Investigation (FBI).

Financial Fraud
Updated June 21, 2016