KC Daycare Owner, Director Indicted in $556K Fraud Scheme

Kansas City’s KARIE/Tima Child Care Center is at the center of a $556,000 federal fraud scandal, with owner Sharif Karie, 39, of Olathe, Kan., and director Sheri Beamon, 46, of Kansas City, Mo., indicted on eight counts tied to a scheme that stretched from October 2013 to June 2016. The pair allegedly submitted fraudulent attendance reports to siphon federal childcare subsidies meant for low-income families—billing for children and hours that never existed.

The indictment, returned by a federal grand jury in Kansas City, Mo., charges Karie and Beamon with conspiracy to commit fraud, theft of public money, three counts of aiding and abetting aggravated identity theft, and three wire fraud counts. A forfeiture allegation demands they surrender proceeds from the scam—anywhere from $100,000 to $556,000—traced directly to the fraudulent claims funneled through the Child Care and Development Fund.

Federal investigators leaned heavily on surveillance: pole cameras installed near the daycare’s entrance at 1019 Admiral Blvd. captured footage during 2015 and 2016, directly contradicting the center’s billing records. Children were routinely billed for full days when camera footage showed them dropped off late or picked up early. In multiple instances, no children were seen entering at all—yet hours were claimed and paid.

A 2014 state compliance review first raised red flags. Auditors found missing attendance records and uncovered that 14 of 15 families at the center had a parent employed there. With just two classrooms, the setup defied logic—parents likely watched their own kids while billing the state for full childcare services. One employee admitted her job depended on having all her children enrolled so her childcare costs were covered by the government.

Unannounced inspections followed, each uncovering fresh violations: failure to maintain proper staff-to-child ratios, health and safety lapses, and continued shoddy attendance tracking. The state repeatedly flagged the facility for noncompliance, but Karie and Beamon allegedly kept filing claims. The fraud persisted despite clear evidence of systemic deception.

Today’s indictment is part of a larger federal crackdown targeting childcare fraud across Missouri and six other states, where schemes collectively cost taxpayers over $1 million. Karie, a naturalized U.S. citizen from Somalia, operated the center under two business names—KARIE Day Care Center, LLC, and Tima Child Care Center, LLC—at the same address with identical staff. The facade, prosecutors say, was designed to mask the fraud. The case is being prosecuted by the U.S. Attorney’s Office for the Western District of Missouri.