U.S. Attorney's Office
Eastern District of Pennsylvania
(215) 861-8200
July 14, 2014

Child Care Operator Charged in Fraud Scheme

PHILADELPHIA—Tracey Parson, 44, of Sicklerville, NJ, was charged today by indictment with two counts of conspiracy, three counts of wire fraud, and one count of mail fraud, announced United States Attorney Zane David Memeger. The charges arose from a scheme to defraud the Pennsylvania Department of Education and the United States Department of Agriculture, and a separate scheme to defraud Clear Channel Communications, Inc. (“Clear Channel”), all through Kiddie Kare Child Care & Education Center (“Kiddie Kare”). Kiddie Kare was a day care company with locations in Philadelphia and was founded and run by Parson. Parson used Kiddie Kare to, among other things, defraud a federally funded program designed to provide meals to eligible children attending day care. In addition, Parson used Kiddie Kare to defraud Clear Channel in connection with a defamation lawsuit stemming from a radio broadcast. Parson falsely alleged in the lawsuit that the defamation resulted in lost revenue at Kiddie Kare.

If convicted the defendant faces a maximum possible sentence of 90 years in prison, a fine of up to $1.5 million, five years of supervised release, and a $600 special assessment.

The case was investigated by the Federal Bureau of Investigation and the United States Department of Agriculture Office of Inspector General. It is being prosecuted by Assistant United States Attorney Mary Kay Costello.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

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