Federal Fraud Charges Filed Against Former Indianapolis Daycare Operator

INDIANAPOLIS - Sharon Jackson, 60, of Pendleton, Indiana, has been charged by federal Information with one count of wire fraud and one count of failure to file an individual income tax return. The charges were brought as part of the Trump Administration's Task Force to Eliminate Fraud. Jackson has agreed to plead guilty to both charges, though she has not yet formally entered her plea in federal court.

According to court documents, between 2017 and 2024, Jackson operated three childcare facilities in Indianapolis at various times: Precious Hearts of Solid Rock, Greater St. Mark Five Star Ministry, and Little Angels of Precious Hearts. During this period, Jackson allegedly devised and executed a scheme to enrich herself by fraudulently obtaining funds through two government programs: the Child Care and Development Fund (CCDF) and the Child and Adult Care Food Program (CACFP).

The CCDF program provides vouchers to low-income families to help cover childcare costs while parents work, attend training, or pursue education. The CACFP program reimburses participating childcare providers for eligible food expenses for enrolled children.

To obtain CCDF funds, Jackson falsely reported that children attended the Little Angels facility on dates and times when she knew they were not present. She recorded fraudulent attendance by using Hoosier Works Child Care cards assigned to parents to swipe children in and out of the building, despite the children not being there. Jackson also submitted false attendance records through a phone system, entering family-specific information including CCDF voucher numbers, zip codes, and attendance details. CCDF providers are not permitted to possess HWCC cards or any other information that would allow them to record a child's attendance.

Jackson and several parents allegedly agreed that she would falsely claim their children attended Little Angels. In return, Jackson paid the parents a portion of the CCDF funds as kickbacks, distributing payments through Cash App or by leaving cash in the gutters at the facility for pickup.

As a result of this scheme, Jackson allegedly obtained approximately $359,083.60 in CCDF funds to which she was not entitled.

Jackson also defrauded the CACFP by claiming reimbursement for meals that were never provided. She allegedly created fraudulent invoices from food vendors, claiming she had purchased and served food that was never provided to children at her childcare facilities. Jackson received additional CACFP funds based on these false claims.

Further, Jackson failed to file federal income tax returns for 2018 and for 2020 through 2023. As of the date of this filing, she has not submitted individual income tax returns for 2018, 2020, 2021, 2022, or 2023. As a result, Jackson owed approximately $287,381.79 in taxes for those years.

The United States Department of Agriculture-Office of Inspector General, Department of Health and Human Services-Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the Indiana Family and Social Services Administration are investigating this case. Jackson is scheduled to make her initial appearance on September 10, 2026.

U.S. Attorney Wheeler thanked Assistant U.S. Attorneys Adam Eakman and Meredith Wood, who are prosecuting this case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

An Information contains merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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