An Indiana daycare owner faces federal charges for allegedly running a years‑long scheme to collect government childcare and meal reimbursements she was not entitled to, and for failing to file multiple years of federal income tax returns.
Federal authorities have charged Sharon Jackson, 60, of Pendleton, Indiana, with one count of wire fraud and one count of failure to file an individual income tax return. The charges come via a federal information and relate to conduct alleged to have occurred between 2017 and 2024. Jackson has agreed to plead guilty to both counts, though she has not yet entered a formal plea in court.
Prosecutors say Jackson at various times operated three childcare facilities in Indianapolis: Precious Hearts of Solid Rock, Greater St. Mark Five Star Ministry, and Little Angels of Precious Hearts. The allegations center on claims that she manipulated attendance and reimbursement systems to obtain funds from federal programs. Investigators trace the scheme to routine provider interactions with the Child Care and Development Fund and the Child and Adult Care Food Program.
The Child Care and Development Fund, or CCDF, issues vouchers to low‑income families so parents can work, attend training, or pursue education while children are cared for. The Child and Adult Care Food Program, CACFP, reimburses providers for eligible meals served to enrolled children. Authorities allege Jackson targeted both programs by submitting false records and claims that made it appear children attended and received meals when they did not.
According to court documents, Jackson allegedly recorded attendance for children who were not present at the Little Angels facility. She is accused of using Hoosier Works Child Care cards assigned to parents to swipe children in and out, and of entering family‑specific data into a phone system for attendance reports. Those entries reportedly included CCDF voucher numbers, zip codes, and attendance details that created the appearance of legitimate enrollment and participation.
CCDF rules prohibit providers from possessing HWCC cards or other information that would allow a provider to record a child’s attendance, and investigators say Jackson disregarded that restriction. In several instances, parents allegedly cooperated by allowing their cards or information to be used in exchange for kickbacks. Payments were allegedly made through Cash App or by leaving cash in gutters at the facility for pickup.
As a result of the claimed scheme, Jackson allegedly obtained approximately $359,083.60 in CCDF funds she was not entitled to. Investigators also say she submitted false CACFP claims by creating invoices that purported to show food purchases and meals served that never occurred. Those fabricated vendor invoices and meal claims generated additional federal reimbursements tied to CACFP.
Separate from the program fraud allegations, Jackson is accused of failing to file federal income tax returns for multiple years, including 2018 and 2020 through 2023. Prosecutors calculated that she owed approximately $287,381.79 in taxes for those years as of the filing date. Those tax issues are included in the federal information alongside the wire fraud charge.
Several agencies are reported to be involved in the investigation: the United States Department of Agriculture — Office of Inspector General, the Department of Health and Human Services — Office of Inspector General, the Federal Bureau of Investigation, the Internal Revenue Service — Criminal Investigation, and the Indiana Family and Social Services Administration. Jackson is scheduled to make her initial appearance on September 10, 2026. The case remains under active investigation as prosecutors prepare the next steps.
U.S. Attorney Wheeler credited Assistant U.S. Attorneys Adam Eakman and Meredith Wood with prosecuting the matter. The Department of Justice announced the creation of the National Fraud Enforcement Division on April 7 to centralize and intensify fraud prosecutions, and that division is handling cases that target fraud against federal benefit programs. The Justice Department’s efforts are described as supporting broader government initiatives aimed at eliminating fraud, waste, and abuse.
An Information contains merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The proceedings ahead will determine whether the allegations in the information can be proven at trial or resolved through plea and sentencing. Court dates and filings will reflect the formal steps in the federal process as the case moves forward.
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