Federal prosecutors in San Diego have charged 12 residents in what they describe as an elaborate daycare fraud scheme involving facilities in San Diego and El Cajon, according to Times of San Diego.

The U.S. Attorney’s Office for the Southern District of California said the defendants obtained home child care licenses, registered with Child Development Associates and the YMCA, and submitted falsified attendance records to collect subsidy payments. Prosecutors allege the scheme generated more than $10 million.

The defendants, ages 22 to 63, live in San Diego or El Cajon and were arrested last Thursday, according to the report. Prosecutors said surveillance footage and documents showed defendants claimed to be caring for children when they were not, including cases where people were allegedly outside the country.

U.S. Attorney Adam Gordon called the case the first of its type since the formation of the National Fraud Enforcement Division, according to the source report.

The charges involve facilities in San Diego and El Cajon. The defendants are presumed innocent unless proven guilty in court. Source: Times of San Diego.