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Ex-state employee convicted in child welfare fraud case

April 7, 2012 12:00:00 AM PDT
A former state employee has been sentenced to 14 years in state prison for masterminding a child care fraud ring.

Demetrius Eugene was also ordered to pay restitution of more than $1.4 million in Friday's sentencing hearing.

Eugene was found guilty and admitted his role in multiple counts of perjury and grand theft.

While working for the state Department of Incorporations, prosecutors say Eugene set up fronts for four home-based child care centers under the name Home Sweet Home Day Care Inc.

With family and friends, he had parents sign attendance sheets in exchange for kickbacks of roughly $300 per child.

Co-defendant Kmond Day was acquitted.

The Associated Press contributed to this report.

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