Riverside Couple Arrested As Part Of Childcare Scheme

A Riverside couple accused in a fraud scheme that allegedly drained hundreds of thousands of dollars from a state-run childcare program have surrendered, authorities said today.

Alberto Lobato Luna, 60, and his wife, Camilla Wright Luna, 61, were named last week in a multi-count criminal complaint that also listed his daughter, Stephanie Luna Vega, 38, of Riverside, as well as her mother, 61-year- old Sylvia Avila, of San Bernardino; and sister-in-law, Toni Catherine Luna, 40, of Riverside.

Also charged are 31-year-old Brenda Acosta of Lake Elsinore and 37-year- old Esmeralda Garcia Martinez of Riverside.

Alberto and Camilla Luna were apparently out of state when Riverside County District Attorney Rod Pacheco announced Friday that charges had been filed against them and a warrant sworn out for their arrest.

The pair surrendered to investigators Wednesday at the Regency Tower in downtown Riverside, which houses the District Attorney’s Office and other county agencies.

They are being held without bail and are slated to be arraigned tomorrow.

The alleged mastermind of the eight-year scheme, uncovered in 2009, was Stephanie Vega. According to prosecutors, while she and Martinez were employed at the Riverside County Office of Education, they allegedly conspired to falsify records and create fictitious children to obtain money from the CalWorks child care program.

At least $527,000 was misappropriated, with a large amount of the taxpayer funds being diverted to the other defendants, according to the District Attorney’s Office.

Vega is charged with a dozen felonies, including grand theft, misappropriation of funds and embezzlement.

Her codefendants face similar charges, as well as perjury, conspiracy and filing false documents.

According to Pacheco, Vega and Martinez allegedly used their positions to set up phantom childcare providers and nonexistent children in need of CalWorks’ benefits.

In some cases, Vega’s family members were designated as providers and receiving checks for nothing more than having their names on documents filed with the county, according to the district attorney.

Under the CalWorks program, which is supported through state and federal funds and administered by individual counties, welfare recipients can receive subsidized daycare for their kids — the idea being that while the children are supervised, mom or dad are attending school or out looking for work or working.

According to Pacheco, the money goes directly to providers. With the state allocating a limited number of funds each year to the program, not everyone who applies for publicly funded childcare services is granted access, he said.

Because of the defendants’ actions, there was less money available for families who genuinely qualified to receive childcare assistance, cheating them out of the opportunity, the county’s top prosecutor said, noting that the system has inherent exposure to fraud.

The defendants’ alleged scheme was brought to authorities’ attention after Vega’s ex-husband discovered cash and documents while rummaging through a closet at the couple’s former home last year, according to prosecutors.

If convicted, the defendants face prison terms ranging from six to 14 years.