Federal authorities say five people schemed to siphon $511,692 from Missouri’s Child-Care Relief Funds, using bogus applications, altered receipts and kickbacks tied to supposed daycare openings and expansions.
Five people are facing an indictment that alleges a widespread fraud against a Missouri childcare expansion program, with prosecutors saying the group took advantage of federal relief dollars meant for new or expanded child care facilities. The total loss cited in the indictment is $511,692, and the case centers on applications submitted to the state program that distributed Child-Care Relief Funds. Those CCRF dollars trace back to the Coronavirus Response and Relief Supplemental Appropriations Act (CRSSA).
The indictment unpacks who did what and when. LaDonna P. Smith, 43, pleaded not guilty Monday to five counts of wire fraud and two counts of identity theft, while Dennis L. Douglas, 40, pleaded not guilty Tuesday to five counts of wire fraud and one count of aggravated identity theft. Deaun A. Flowers, 61, Princess T. Jones, 47, and Toi P. Jones, 65, were each indicted on one count of wire fraud and one count of theft of government property.
Federal prosecutors say the scheme unfolded between August 2021 and February 2023 as defendants applied for CCRF awards tied to fictitious or misrepresented childcare projects. The indictment alleges Smith submitted applications for “Little Precious Angels Childcare 2” that resulted in $100,000 and for “Little Precious Angels Childcare 3” that returned $127,066. Douglas is accused of receiving $79,927 on behalf of “Above and Beyond Playmate Center.”
Another allegedly fraudulent application, submitted by Smith, Flowers and Toi Jones for “Totta Tots Daycare,” is said to have produced $129,699 in payments. The indictment claims $30,000 of that sum was funneled back to Smith as a kickback. After the Missouri Department of Elementary and Secondary Education demanded repayment of $100,000 because the funds were not spent on allowable expenses within four months, prosecutors say Flowers cut a $15,000 check to Toi Jones and wrote herself an $11,000 check.
Federal filings also name “Childhood Memories Daycare and Learning Center” as a vehicle for roughly $75,000 in illicit funds, with $20,000 allegedly paid to Douglas as a kickback. Smith and at least one associate are accused of trying to obtain $125,000 for “Bright Star Academy,” according to the indictment. Across these schemes, defendants allegedly submitted receipts, invoices and lease documents to justify the payouts.
Prosecutors say many of the receipts and invoices were false or had been altered to hide the true purchase dates or the fact that items were never bought. The paperwork purported to show payments for furniture, equipment, materials, salaries and benefits, rent or lease payments, supplies and remodeling, all expenses that would have been allowable if legitimate. In several cases the government contends the documentation was fabricated specifically to make ineligible spending appear eligible for reimbursement.
The indictment dates to March 18, 2026, and spells out specific transfers, checks and the alleged flow of kickbacks tied to the awards. Investigators from the U.S. Department of Health and Human Services Office of Inspector General and the FBI handled the probe, and Assistant U.S. Attorney Jonathan Clow is prosecuting the case. The filings make clear the alleged conduct targeted taxpayer-funded relief intended to support families and childcare services.
“We take allegations of fraud involving programs meant to help Missouri’s children and families very seriously,” said U.S. Attorney Thomas C. Albus. “We’d like anyone with concerns about public benefit programs to contact investigators so that we can ensure the integrity of these programs.”
“The federal relief funds at the center of this case are intended to support families and strengthen childcare services across Missouri, and any attempt to divert such resources through fraud is taken seriously,” said Linda T. Hanley, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS OIG will continue to work with our law enforcement partners to protect taxpayer-funded programs and pursue accountability whenever federal funds are put at risk.”
Charges outlined in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. The case remains active as it moves through the federal system, with arraignments, plea possibilities and potential trials to follow depending on how defendants and prosecutors proceed.
