Day care owner admits $426K fraud of state pay program
Jillaine Mertens pleaded guilty in U.S. District Court to one count of wire fraud after admitting she stole $426,382 from Minnesota's Great Start Compensation Support Payment Program.[1]
Under a plea agreement, Mertens faces a federal guideline range of 21-27 months in prison, forfeiture of the stolen funds and supervised release pending sentencing.[1] Prosecutors say she submitted false and inflated payroll claims tied to three day cares, including Tree of Life in Ramsey and Creative Stars Academy centers in Rochester and Kasson.[1] Investigators found she listed at least 23 people she did not employ and inflated hours for real employees to boost reimbursements between November 2024 and May 2025.[1]
On May 21, 2026, the Justice Department announced a broad federal takedown that charged 15 defendants in schemes exceeding $90 million in intended losses and included Mertens among those charged.[1] Minnesota lawmakers created the Great Start Compensation Support Payment Program in May 2023 to provide monthly reimbursements to child care providers after federal pandemic grants ended. The program distributed $141.3 million in FY 2025, with 68% of that going to licensed child care centers.
The mainstream summary does not fully capture the broader context of the Great Start Compensation Support Payment Program, particularly the scale of its financial operations. While it mentions the program distributed $141.3 million in FY 2025, it overlooks that 68% of this amount, approximately $96.5 million, was allocated to licensed child care centers, emphasizing the significant financial stakes involved in such programs. This context is critical, as it highlights the potential for widespread fraud within a system designed to support child care providers, which is further underscored by the fact that Minnesota has about 7,250 licensed child care programs, indicating a vast network susceptible to similar abuses.[2]
Additionally, the summary does not address the systemic issues contributing to fraud in government benefits programs. An analysis by Romina Boccia at the Cato Institute points out that the financing structure creates weak incentives for states to verify eligibility, leading to administrative complexities and reliance on self-reported data. This structural explanation suggests that Mertens' case may not be an isolated incident but part of a larger trend of fraud and improper payments in government subsidy programs.[3]
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📊 Relevant Data
The Great Start Compensation Support Payment Program distributed $141.3 million in payments in FY 2025, with 68% ($96.5 million) going to licensed child care centers.
Great Start Compensation Support Payment Program 2026 Legislative Report — Minnesota Legislative Reference Library
Minnesota has about 7,250 licensed child care programs.
Facts First: The real story on services that support Minnesotans — Minnesota Department of Children, Youth, and Families
Mertens' case was part of a May 2026 federal takedown charging 15 defendants with schemes involving over $90 million in intended losses, including multiple child care fraud cases.
Minnesota Health Care Fraud Takedown Results in Charges Against 15 Defendants Over $90M in Fraud — U.S. Department of Justice
📌 Key Facts
- Defendant: Jillaine Mertens pleaded guilty to one count of wire fraud in U.S. District Court.
- Fraud amount and program: She admitted defrauding Minnesota’s Great Start Compensation Support Payment Program out of $426,382 between November 2024 and May 2025.
- Scope and location: False and inflated payroll claims were tied to three day cares, including Tree of Life in Ramsey (Anoka County) and Creative Stars Academy centers in Rochester and Kasson.
- Method: Investigators found she listed at least 23 people she did not employ and inflated hours for real employees to boost reimbursements.
- Sentencing: The plea agreement outlines a guideline range of 21–27 months in prison, forfeiture of stolen funds, supervised release pending sentencing, and no sentencing date yet set.
📰 Source Timeline (1)
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