Four people on the South Shore have been arrested on allegations they schemed to defraud Quebec’s subsidized daycare system of $15 million.
The four face charges of fraud, conspiracy to commit fraud and using the proceeds of crime.
The Surete du Quebec had been investigating the four since 2014, working in collaboration with the Family’s Ministry.
Under Quebec’s rules for running daycares, a person can hold a maximum of five daycare permits with a maximum of 300 spots for children. The suspects allegedly used stand-ins – essentially fake owners – to receive additional permits from the government, leading to more spaces, and ultimately more government money.
Two of the suspects, a couple named Ji Dao Xiao and Ling Yang, were arrested in Greenfield Park. Their son, Yang Xiao, denied any knowledge of the allegations.
“I can’t tell you anything about that, it’s about my parents and they’re not here right now,” he said. “Five officers came and took my parents.”
The couple is connected to the South Shore daycare Les Jardins de Leckie.
One other suspect was arrested in Chambly and the fourth in St-Hubert. All four should appear in the Longueuil courthouse on Thursday, according to SQ spokesperson Claude Denis.
“The investigation is still ongoing, there is a possibility someone else could be arrested,” said Denis.
While the arrests were all on the South Shore, police are also investigating La Foret Enchantee, a daycare in the Beauport borough of Quebec City.
The suspects should appear in the Longueuil courthouse Thursday.
