Are some daycare providers cashing in on kids?

PALM BEACH COUNTY, Fla. - WEB EXTRAS AT THE BOTTOM OF THIS ARTICLE

Since December, the Contact 5 Investigators have been watching, tracking who's coming and who's going from some home daycare centers in Palm Beach County.

What we found is a problem that often goes unnoticed.

"Our big challenge is we can't be out there 24 hours a day," said Warren Eldridge, Executive Director of the Early Learning Coalition of Palm Beach County. The agency oversees millions of dollars in public money that helps low income parents work without the costly worry of childcare.

28 year old Angelica Castro is among the estimated 20,000 Palm Beach County families who, currenly, get government help. Castro's 3 1/2 year old daughter just started daycare a few months ago. Castro waited a year-and-a half before she got a call that the government would help her pay for her daughter's care while she could work.

"I was so happy," she told NewsChannel 5. "I was like, wow, my daughter has an opportunity."

But, according to the Early Learning Coalition, about 4,500 Palm Beach County families are still waiting for the same chance.

"While we know of 4,500, when you look at the the population of children in our community that are under the income level, we know the need is even more dramatic than what is on our waiting list," said Eldridge.

But funding is limited. Last year, the state subsidized $66 million in local, state and government funds to help needy families send their children to daycare. Daycare providers are reimbursed for each needy child enrolled. But Eldridge is concerned money designed to help families is being pocketed by some daycare providers cashing in on kids.

At Build a Child Daycare in Riviera Beach, county records show Iesha Hubbard has been offering around the clock child care since 2009.

In return for taking care of low income children, state records show last year Hubbard received nearly $60,000 in daycare reimbursements from the government.

But when the Contact 5 Investigators were watching her daycare, few if any children ever showed up at the home.

Instead, after monitoring the home daycare for 3 months, the Contact 5 Investigators noticed kids coming and going right next door, where another home daycare provider is located.

A closer look shows the daycare next door, Kimberly Hubbard Family Daycare, is operated by Kimberly Hubbard, Iesha Hubbard's mom. State records show Kimberly has collected more than a half million dollars in government money since she started operating in 2003.

When the Contact 5 Investigators shared our findings with Warren Eldridge, he said, "Yes, that does raise a red flag."

Why?

Together Kimberly and Iesha Hubbard received nearly $135,000 in child care reimbursement claims last year, more than any other home daycare provider in the county.

Yet, when the Contact 5 Investigators analyzed their attendance logs with our surviellance, what we saw and they claimed didn't add up.

Nor did it add up to auditors who also found attendance discrepancies during a recent check.

The Contact 5 Investigators have learned nearly a dozen home daycare providers are currently under investigation for possible fraud, among them are Kimberly and Iesha Hubbard.

Warren Eldridge couldn't comment on any ongoing investigation.

So the Contact 5 Investigators approached the Hubbards for some answers.

"Wait, hold on, we don't want the news," said Iesha Hubbard when we caught up with her and her mother, Kimberly on a Friday afternoon.

Contact 5: "We just want to talk with you about the government subsidies you guys are getting for daycare."
Iesha Hubbard: "We don't want to be on the news."
Contact 5: "It doesn't seem like the sign in/sign out sheets are matching up with (what) we're seeing?"

Iesha and Kimberly drove off, refusing to answer our questions. In a telephone conversation hours later, Iesha and Kimberly both stated they do receive government funds, but they refused to answer any of our questions regarding their attendance records and the public money received. When asked if they work together, Kimberly Hubbard hung up.

Cracking daycare fraud isn't easy.  Last year, the Early Learning Coalition suspected a dozen daycare providers of possible fraud.  Yet, to date, no provider has been charged.  Eldridge says proving the crime is difficult.    "Our biggest challenge is we can't be out there 24 hours a day," he said.

The Florida Department of Financial Services has three investigators in Palm Beach County working daycare fraud cases.  The problem, it's not their only focus.  "We are referred cases from the Department of Children and Families that include Medicaid fraud, the old welfare fraud and what was formerly known as food stamps.  We do the best we can with the resources we have in this current economic climate," said Russ Fernandes, Assistant Director for DFS Division of Public Assistance Fraud.

According to DFS, the number of suspected cases of daycare fraud referred to the state has dramatically climbed from