Five people have been indicted and accused of stealing $511,692 from a Missouri childcare expansion program and using some of the money for kickbacks, travel and luxury goods.
LaDonna P. Smith, 43, pleaded not guilty Monday to five counts of wire fraud and two counts of identity theft. Dennis L. Douglas, 40, pleaded not guilty Tuesday to five counts of wire fraud and one count of aggravated identity theft.
Deaun A. Flowers, 61, Princess T. Jones, 47, and Toi P. Jones, 65, were each indicted with one count of wire fraud and one count of theft of government property. All three appeared in court last week.
The March 18, 2026, indictment says that between August 2021 and February 2023, the five took advantage of a Missouri Department of Elementary and Secondary Education program to award Child-Care Relief Funds for the opening of new childcare facilities or the expansion of existing facilities. The CCRF funds came from the Coronavirus Response and Relief Supplemental Appropriations Act (CRSSA).
The indictment says Smith submitted fraudulent CCRF applications on behalf of “Little Precious Angels Childcare 2” that resulted in a total of $100,000 in payments and another application on behalf of “Little Precious Angels Childcare 3” that resulted in $127,066. Douglas fraudulently received $79,927 on behalf of “Above and Beyond Playmate Center,” the indictment says.
Smith, Flowers and Toi Jones submitted a fraudulent application on behalf of “Totta Tots Daycare” that resulted in $129,699, the indictment says, $30,000 of which went towards a kickback for Smith.
After DESE demanded repayment of $100,000 for failing to spend the funds on allowable expenses within four months, Flowers wrote Toi Jones a check for $15,000 and wrote herself a $11,000 check, the indictment says. Douglas and Princess Jones fraudulently obtained about $75,000 on behalf of “Childhood Memories Daycare and Learning Center,” $20,000 of which was paid as a kickback to Douglas, the indictment says.
The defendants submitted fraudulent receipts and documentation showing that they had paid for furniture, equipment, materials, salaries and benefits, lease or rent payments, supplies and/or remodeling for a daycare, to verify that the requested CCRF money had been spent on allowable expenses related to opening or expanding a childcare facility, the indictment says. In some cases, the receipts, invoices or lease agreements were false. In others, the documents had been altered to make purchases occurring outside allowable dates eligible for reimbursement.
Smith and another person also attempted to fraudulently obtain $125,000 on behalf of “Bright Star Academy,” the indictment says.
“We take allegations of fraud involving programs meant to help Missouri’s children and families very seriously,” said U.S. Attorney Thomas C. Albus. “We’d like anyone with concerns about public benefit programs to contact investigators so that we can ensure the integrity of these programs.”
“The federal relief funds at the center of this case are intended to support families and strengthen childcare services across Missouri, and any attempt to divert such resources through fraud is taken seriously,” said Linda T. Hanley, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS OIG will continue to work with our law enforcement partners to protect taxpayer-funded programs and pursue accountability whenever federal funds are put at risk.”
Charges outlined in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The U.S. Department of Health and Human Services Office of Inspector General and the FBI investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
