Kansas City, MO – A Kansas City daycare owner was sentenced in federal court for her role in a $772,000 fraud scheme that resulted in a $653,329 tax loss to the federal government and $119,532 in government benefits she was not entitled to receive.
Patricia L. Johnson-Rushing, 55, was sentenced by U.S. District Judge Greg Kays to two years and three months in federal prison without parole. The court also ordered Johnson-Rushing to pay $772,861 in restitution and to forfeit to the government $95,704.
On September 7, 2023, Johnson-Rushing pleaded guilty to one count of theft of public money, one count of benefits fraud, and one count of conspiracy to defraud the United States. Johnson-Rushing admitted that she fraudulently received $83,394 in public funding for her childcare center, Granny’s Pray & Play, located at 3714 E. 27th Street in Kansas City, MO, and that she unlawfully received food stamps.
The total fraud to which Johnson-Rushing pleaded guilty is $772,861. The scheme involved Johnson-Rushing submitting false claims to the Missouri Department of Social Services that intentionally reported false information for children attending Granny’s Pray & Play from January 1, 2016, to November 28, 2019. This was in order to receive payments from the federal Child Care and Development Block Grant Program.
Johnson-Rushing also admitted to participating in a conspiracy to obstruct the collection of federal employment taxes by failing to pay over to the government $154,186 in federal income tax and FICA contributions collected from the paychecks of Granny’s Pray & Play employees. This was part of a total tax loss to the government, including the employer’s share of payroll taxes, of $653,329.
Johnson-Rushing’s scheme also involved her signing food stamp applications to receive subsidy money from the state of Missouri, falsely claiming to have no job or bank account. In reality, she frequently withdrew funds from the Granny’s Pray & Play bank account to purchase cashier’s checks for herself. Personal expenses were also paid in her name from the Granny’s Pray & Play bank account, including $15,000 towards the purchase of a Cadillac Escalade in October 2016.
The total loss to the Missouri Family Support Division due to Johnson-Rushing’s fraudulent applications is $36,138. Johnson-Rushing’s sentence is a result of her guilty plea to the charges against her. The court’s decision sends a clear message that fraud and deception will not be tolerated, especially when it comes to vulnerable populations such as children and low-income families.
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Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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