There Are Ghost Kids in Them Thar Fake Daycare Centers in Gavin Newsom's California

Remember when the California Democrats were so upset when Nick Shirley found their tax-sucking fake daycare centers that they wrote a law, which Gavin Newsom signed , to prevent Shirley from uncovering more fraud? Remember that it was just a couple of weeks ago?

Well, Operation Cradle to Grift — and no, I'm not making up that name — has just been unleashed on a dozen alleged bad actors who ran daycare centers full of ghost babies for whom they were paid very well for years in California.

Look at this dude: he bought himself a new whip — or two — to get to work at the daycare, which was allegedly run out of his home.

Well, who are we kidding? This guy actually traveled out of the country while raking in daily dollars for fake daycare kids in his "home daycare."

Rolls-Royces. Luxury homes. Nearly $400,000 a year in income from California ghost daycares. The DOJ says California knew.

I exposed Mohamad Alawad in January. Here’s his social media with Rolex watches and expensive cars. pic.twitter.com/FThiTUiaOk

— Amy Reichert (@amyforsandiego) September 15, 2026

California activist Amy Reichert directed Shirley to the locations where the feds later confirmed that "daycares" were "filled" with "ghost" children and run exclusively by people from Middle Eastern and African countries in San Diego.

The feds confirmed that a dozen alleged grifters were charged with ripping off state taxpayers to the tune of $10 million. The defendants came from countries that basically hate the U.S.

Tell me I'm wrong.

The alleged fake daycare operators were from Syria, Somalia — there's that name again. Sudan, Afghanistan, and Iraq rounded out the five countries of origin of the bad actors, who are naturalized citizens and lawful permanent residents. To be fair, there are many fine Iraqis in San Diego County, but some of their relatives, it seems, may be needing help to replenish their federal prison commissary accounts.

Fraudsters FOILED in San Diego.

A dozen individuals were arrested for their role in a multi-million-dollar childcare fraud scheme.

The patriots @HSI_HQ are hard at work with our @WHFraudTF partners in stopping this flagrant theft of taxpayer dollars. pic.twitter.com/bS8lMQSIKG

— Homeland Security (@DHSgov) September 16, 2026

IRS Criminal Investigation Chief Jarod Koopman said during a San Diego press conference Wednesday, "Today’s takedown exposes a sprawling fraud scheme that siphoned more than $10 million from programs designed to help low-income families who depend on subsidized childcare." Yeah, no kidding. 

“By following the money, IRS Criminal Investigation uncovered patterns of deceit that revealed twelve ghost daycare operations billing for children who were never present," Koopman said. "This was not a victimless crime. It deprived working parents of critical support and eroded trust in programs meant to protect the most vulnerable in our communities."

Here's the map of where the fake daycares were located. We hope that the feds are allowed to give out the addresses of the fake daycares in light of the new state law.

The state law, colloquially dubbed the "Stop Nick Shirley" Act , was passed by the Democratic supermajority in the legislature and signed into law by Gov. Gavin Newsom (D-Calif.) after Amy and Nick outed the fake daycare centers.

For his part, Nick Shirley had one question for the man who has tried to shut him up and shut him down. 

"Where were the kids?"

Hey Gavin Newscam, where were the kids?

Good job covering for fraudsters and attacking the person who exposed the fraud. I've exposed and helped save California hundreds of millions if not billions of dollars.

What have you done for California? pic.twitter.com/KjdnkmtPab

— Nick shirley (@nickshirleyy) September 15, 2026

U.S. Attorney Adam Gordon told reporters the simple truth for fraudsters.

“Today is a bad day for home daycare fraud,” he said. “These are the first charges alleging this type of fraud since the formation of the National Fraud Enforcement Division. These fraudsters may have criminally gamed the system before. But today, the game is over.”

Let's hope so. 

"While the 12 federal complaints are unrelated, the scheme was essentially the same: Defendants obtained a California license to operate a home childcare facility and registered with Child Development Associates (CDA) and the YMCA to provide subsidized childcare to eligible families," the feds said in a press release. And they lied on their monthly reports to the state. How long did this go on? That's an unsolved mystery for now.

How many more are out there? How many millions of dollars are still going out the door to pay for ghost kids in daycares?

It stands to reason that there are many more people ripping off the California taxpayers. 

Editor's Note: Do you enjoy PJ Media's conservative reporting exposing the radical left and woke media? Support our work so we can keep bringing you the truth.

Join PJ Media VIP and use promo code FIGHT to receive 60% off your membership.