Four Defendants Charged in Federal Court with Defrauding State of Wisconsin - Wisconsin Works (W-2) and Foodshares Programs

United States Attorney James L. Santelle announced today that four defendants have been charged with various federal offenses related to the operation of a state-authorized childcare facility. The defendants are identified as: Duane Gladney (age: 55) and Shontina Gladney (age: 40) of Menomonee Falls, Telisa Hopgood (age: 42), of Milwaukee, and Latasha Wilder (formerly known as Latasha Jackson) (age: 33), of Pearland, Texas.

Count One alleges that the defendants conspired to use a day care operating as the Executive Kids Child Care Center to fraudulently obtain reimbursement from the State of Wisconsin under the Wisconsin Works (W-2) program. The conspiracy is alleged to be in violation of 18 U.S.C. § 371. If convicted, the defendants face up to five years' imprisonment, a fine of up to $250,000, and a maximum of three years of supervised release.

Counts Two to Ten allege that Duane Gladney, Shontina Gladney, and Telisa Hopgood executed a wire fraud scheme that involved using false child care attendance reports to wrongfully obtain money from state agencies, in violation of 18 U.S.C. §§ 1343 and 2. If convicted, these defendants face up to twenty years' imprisonment, up to $250,000 in fines, and a maximum of five years of supervised release on each count.

Counts Eleven to Fifteen charge that Duane Gladney and Telisa Hopgood wrongfully obtained W-2 funds by submitting false attendance reports, in violation of 18 U.S.C. § 641. If convicted, these defendants face up to 10 years' imprisonment, a fine of up to $250,000, and a maximum of three years of supervised release on each count.

Counts Sixteen and Seventeen allege that Latasha Wilder fraudulently obtained welfare benefits, in violation of 18 U.S.C. § 641. Count Seventeen charges that Latasha Wilder, with the assistance of Shontina Gladney, fraudulently obtained childcare benefits. If convicted, these defendants face up to 10 years' imprisonment, a fine of up to $250,000, and a maximum of three years of supervised release on each count.

According to United States Attorney James L. Santelle "today's indictment reflects the strong commitment of federal and state law enforcement to investigate thoroughly and prosecute effectively those individuals who abuse legitimate programs designed to benefit our families, including children. When monies intended to support the operation of authorized childcare facilities are diverted, the public is denied the proper use of its funding for this critically important mission. I commend agents and staff of the Federal Bureau of Investigation, the Internal Revenue Service, and the State of Wisconsin's Child Care Fraud Task Force for the excellent collaborative work in investigating this matter."

FBI Special Agent in Charge Nancy McNamara said, "This is the first federal indictment related to the American Recovery and Reinvestment Act in this jurisdiction, and we are committed to investigating these types of crimes when they arise."

This matter was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and state investigators assigned to the Child Care Fraud Task Force. It is being prosecuted by Assistant United States Attorneys Bridget J. Domaszek and Mel S. Johnson.

The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.