Prosecutors say a group of five turned a Missouri child care expansion program into their personal piggy bank, siphoning off about $511,000 that was supposed to help open or grow licensed daycares in the state.
LaDonna P. Smith, 43, and Dennis L. Douglas, 40, have pleaded not guilty to multiple federal charges, while Deaun A. Flowers, 61, Princess T. Jones, 47, and Toi P. Jones, 65, are facing related counts in the same alleged scheme. All of the cases were filed in St. Louis-area courts this month.
What prosecutors allege
According to KMOV, Smith pleaded not guilty on Monday to five counts of wire fraud and two counts of identity theft. Douglas also pleaded not guilty, facing five counts of wire fraud and one count of aggravated identity theft.
Flowers, Princess T. Jones and Toi P. Jones each face one count of wire fraud and one count of theft of government property, and they appeared in court last week, KMOV reported. Prosecutors say all five took advantage of a Missouri Department of Elementary and Secondary Education grant program that awards Child‑Care Relief Funds to launch or expand child care operations, then diverted roughly $511,000 that should have gone to those projects.
How the grant was supposed to work
The grant at the center of the case came through DESE's Office of Childhood, which offered Innovation Grants funded by federal Child Care Development Fund dollars, according to DESE. Among them was an "Innovation Grant to Expand a Child Care Program" that closed Feb. 28, 2026, DESE notes.
The money was supposed to help providers cover startup expenses, minor facility improvements, staff training and help with licensing. To qualify for those awards, applicants had to be CCDF‑eligible and registered vendors so that funding flowed only to programs that met health and safety requirements.
Part of a larger enforcement push
Officials say this case fits into a broader crackdown on fraud involving public funds meant for child care and related benefits. In an earlier Missouri case, a Kansas City daycare owner was sentenced after investigators uncovered hundreds of thousands of dollars in false claims to government programs, according to a U.S. Department of Justice release.
Authorities argue that these prosecutions protect money earmarked for low‑income families and help preserve actual child care slots for kids who need them, instead of padding the pockets of people gaming the system.
Legal exposure
Wire fraud is a federal felony that can carry up to 20 years in prison per count under 18 U.S.C. § 1343, as summarized by the Legal Information Institute. Aggravated identity theft carries a mandatory minimum sentence of two years that must run consecutively to any underlying sentence, according to the United States Sentencing Commission.
If any of the defendants are convicted, they could also face fines, restitution and potential sentence increases under the federal guidelines tied to the size of the loss and other aggravating factors.
Next steps
The cases are still in the early stages, with more hearings and filings expected as prosecutors and defense attorneys gear up for trial. As KMOV notes, some of the defendants appeared in court this week, but no trial dates have been publicly set.
Future court records will clarify whether prosecutors pursue forfeiture of assets, additional charges or civil recovery to claw back the alleged $511,000 loss.
