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Independent Journalists Say “Ghost Daycares” May Be Driving Fraud in Washington’s Childcare System

Choe & Higby
Choe & Higby

As Washington state continues pouring hundreds of millions of dollars into childcare subsidies and daycare support programs, independent journalists investigating the system say they’ve uncovered what appear to be “ghost daycares,” licensed childcare facilities listed as active but seemingly not operating in reality.

During a recent segment on The Ari Hoffman Show on Talk Radio 570 KVI, independent journalist Jonathan Choe and investigator Cam Higby joined host Ari Hoffman to discuss their ongoing efforts to verify whether certain daycare listings across Washington are legitimate. According to the pair, the work was sparked by a larger investigation into alleged fraud in the daycare system, particularly involving a large number of Somali-run childcare providers registered in Washington.

Hoffman, who said he had been researching the issue while traveling out of town, described the investigation as an attempt to confirm whether listed daycares are actually functioning as childcare businesses.

Key Data Suddenly Disappearing from State Website

Higby said his research began with publicly accessible records from Washington’s Department of Children, Youth, and Families (DCYF), which includes details like daycare addresses, maximum licensed capacity, and the number of available slots. But as he revisited records for sites he and Choe had already investigated, he noticed changes that raised red flags.

“I distinctly remember some of them having the address for the daycares on the website,” Higby said. “Suddenly they’re no longer there.”

More concerning, he said, was what he described as the disappearance of enrollment indicators.

“We’ve been using the maximum licensed capacity…and the total available slots…those are suddenly disappearing,” Higby said. “Now the total slots available is completely blank or it says zero.”

Hoffman later told listeners that DCYF responded to inquiries by stating they were updating their website for ADA compliance, warning that data “may change over time.” Hoffman expressed skepticism about both the timing and the explanation.

Door-to-Door Verification Turns Up “Ghost Daycares”

Choe described a hands-on approach to verifying the claims by physically visiting listed daycare addresses across the region, including Kent, Federal Way, South Seattle, and SeaTac.

Choe credited citizen journalist Kristen Magnuson with compiling a list that reportedly includes more than 500 Somali-run daycares operating in Washington state. That list, he said, helped guide their research strategy.

From there, Choe and Higby began what Choe called a “divide and conquer” method, knocking on doors to confirm whether these businesses were real.

According to Choe, they have already identified at least four locations that they now refer to as “ghost daycares.”

“These are registered on the state website as functioning licensed daycares,” Choe said, “but when we go and knock on the doors…either no one’s there…and they confirm a daycare doesn’t exist, or someone comes out and yells and says, ‘This is not a daycare, go away.’”

Choe said federal-level law enforcement sources he has spoken to believe those locations should at least be investigated for potential fraud.

Still, both men emphasized that they are not accusing all Somali-run daycares of wrongdoing.

“We’re not saying every single Somali-run daycare is fraudulent or problematic,” Choe stressed. “We’re hoping the vast majority are not.”

A System That Investigates Too Few Complaints

Hoffman and the guests also questioned whether DCYF has the staffing and oversight capacity to monitor a system this large. Choe said the agency acknowledged it conducts a certain number of fraud investigations per year, but he argued it “falls far short” compared to the number of childcare providers operating statewide.

“It seems like if somebody reports a problem, then they might show up,” Hoffman said, suggesting enforcement may be complaint-driven rather than proactive.

Millions Paid to Sites That Appear Empty

Higby cited one example where he claimed a listed daycare received $2.4 million since January 2024, yet the location did not appear to be functioning in a way consistent with that funding.

“There is no chance that something bad is not happening there,” Higby said, adding that wrongdoing could involve the daycare, the state, or both.

Hoffman noted that during the holiday season, when many families seek childcare because schools are closed, daycares should be operating at or near capacity. Yet some of the visited locations appeared quiet, without visible evidence of children, playgrounds, or normal daycare activity.

Political Pushback and Public Smears

Higby and Choe also reacted to being criticized by public officials and political leaders, including accusations that they are “extremist influencers.” Higby said he views that label as an attempt to discredit a legitimate investigation.

“It actually does make me feel like I’m doing my job really well,” Higby said.

Hoffman said the issue was raised publicly during Socialist Seattle Katie Wilson’s inauguration, where he said speakers reportedly criticized the journalists rather than addressing the underlying allegations.

The group also discussed claims that some daycare operators have donated to political campaigns, primarily Democratic candidates, raising questions about whether the childcare funding system is being exploited for political influence.

Audit Questions: “Unauditable” Spending

Choe pointed to an additional development that he said Magnuson uncovered: a public Washington audit raising concerns about more than $400 million in spending described as unauditable through DCYF-related childcare expenditures.

If confirmed, he argued, that kind of spending would represent “stunning” lack of accountability and should prompt deeper scrutiny.

Calls for Legitimate Providers to Condemn Fraud

While both journalists said the investigation is still in early stages, Choe argued that legitimate childcare providers, especially those who share cultural ties with the operators under suspicion, should be the loudest voices demanding accountability.

“If the ones who are being run legitimately don’t want to have anything to do with this,” he said, “they should be condemning the alleged fraudster.”

Hoffman closed the segment by praising the independent media efforts, arguing that journalists doing this kind of door-to-door verification would normally be lauded rather than attacked.

“If anybody in the mainstream media did what you guys…are doing,” Hoffman said, “they’d probably be getting Pulitzer Prizes.”

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