MN fraud: Former day care owner pleads guilty to $426K in false payments
Image shows the former location of Rochester Creative Stars Academy (Photo Courtesy of KTTC). (Supplied)
MINNEAPOLIS (FOX 9) - A woman pleaded guilty to one count of wire fraud in federal court after investigators found she defrauded the State of Minnesota out of $426,382 in false employee reimbursement claims.
The U.S. Department of Justice announced charges against Jillaine Mertens and 14 other people back in May.
Mertens admitted to inflating hours and making false claims about staff for her three Minnesota day cares, including Creative Stars Academy in Rochester and Kasson as well as Tree of Life in Ramsey.
Former MN day care owner pleads guilty to fraud
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According to a plea agreement filed in federal court, Mertens defrauded the Minnesota Great Start Compensation Support Payment Program (GSCSPP) out of $426,382 between Nov. 2024 and May 2025.
Investigators found Mertens submitted false information on at least 23 people who she claimed to employ and inflated the hours of people she did employ.
What's next:
Mertens' plea agreement shows a sentencing range of 21–27 months, but federal judges have final say above or below those guidelines.
The plea agreement also shows that Mertens agreed to forfeit money she stole through the fraudulent claims.
A sentencing date has not yet been set and Mertens is currently out on supervised release.
The Source: This story uses information taken from federal court documents.