KC Reporter

KANSAS CITY, Mo. – A Kansas City day care owner was sentenced in federal court today for her role in a conspiracy that resulted in a $653,329 tax loss to the federal government and fraudulently collecting almost $120,000 in government benefits she was not entitled to receive.

Patricia L. Johnson-Rushing, 55, was sentenced by U.S. District Judge Greg Kays to two years and three months in federal prison without parole. The court also ordered Johnson-Rushing to pay $772,861 in restitution and to forfeit $95,704 to the government.

On Sept. 7, 2023, Johnson-Rushing pleaded guilty to one count of theft of public money, one count of benefits fraud, and one count of conspiracy to defraud the United States.

Johnson-Rushing admitted that she fraudulently received $83,394 in public funding for her childcare center, Granny’s Pray & Play, located at 3714 E. 27th Street in Kansas City, Mo., and unlawfully received food stamps. She also admitted participating in a conspiracy to obstruct the collection of federal employment taxes by failing to pay over $154,186 in federal income tax and FICA contributions collected from the paychecks of Granny’s Pray & Play employees. This contributed to a total tax loss to the government of $653,329.

The total fraud amount Johnson-Rushing pleaded guilty to is $772,861.

**Theft of Public Money**

Johnson-Rushing admitted submitting false claims to the Missouri Department of Social Services that intentionally reported false information for children attending Granny’s Pray & Play from Jan. 1, 2016, to Nov. 28, 2019. The purpose was to receive payments from the federal Child Care and Development Block Grant Program intended for low-income families seeking high-quality early care and after-school programs. Parents of adopted children are eligible for subsidies if both parents are working; however, providers cannot be paid for services rendered to their own children.

Six children adopted by Johnson-Rushing and her husband were approved for full-time care subsidies based on false documentation misrepresenting her ownership of the center and claiming employment elsewhere. According to the plea agreement, Granny’s Pray & Play received $83,394 fraudulently.

**Benefits Fraud**

From 2016 to 2019, Johnson-Rushing signed food stamp applications falsely claiming no job or bank account while frequently withdrawing funds from Granny’s Pray & Play's bank account for personal use including purchasing cashier’s checks and paying personal expenses such as $15,000 towards a Cadillac Escalade in October 2016.

Based on these fraudulent statements and representations on her application forms, she unlawfully acquired $12,310 in food stamps with additional fraud causing a total loss of $36,138 to the Missouri Family Support Division.

**Conspiracy to Defraud the United States**

Granny’s Pray & Play had about 15 employees whose federal income tax and FICA contributions were withheld but not paid over by Johnson-Rushing amounting to $154,186 from first quarter 2015 through fourth quarter 2018.

The total tax loss combining relevant conduct (including employer payroll taxes) is calculated at $499,142 plus an additional failure-to-pay employee taxes amounting collectively at $653,329 overall tax loss incurred by government entities due non-payment obligations.

**Bankruptcy Petitions**

Court documents revealed that Johnson-Rushing filed bankruptcy on June 29th which remains pending before bankruptcy court without disclosing this criminal case during filing processes while having three previous bankruptcies filed during last year dismissed under compliance issues related adhering procedural rules mandated within system framework further illustrating systemic abuse tendencies highlighted prosecutorial observations noting four attempts collectively flagged concerns noted cases pursued respective judicial channels sought accordingly handled prescribed regulations governing said jurisdictional mandate undertaken requisite enforcement standards enforced uniformly judicial review scrutiny upheld principled integrity foundationally premised operational protocols guided principles fundamental fairness accountability imperative ensuring lawful justice administered equitably transparency paramount emphasized throughout investigatory adjudicative proceedings culminating outcome derived finality reached conclusion warranted sentencing determination imposed contextually basis evidentiary findings substantiated confirmed conclusive judgments rendered merit procedural correctness affirmed adjudication determined judicially sanctioned reflective entirety scope consideration aspects evaluated thoroughly comprehensive analysis presented case fully vetted finalized accord judicial authority vested duly exercised discretionary latitude afforded within confines statutory constraints applicable legal framework delineated precedent guiding principle reference context established normatively conventional practices adhered systematically administered resultant culmination conviction upheld formalized execution sentence enacted conclusively authoritative finality endorsed prosecutorial representative entity Assistant U.S Attorney Rudolph R Rhodes IV lead prosecution efforts investigative collaboration agencies inclusive U.S Department Health Human Services Office Inspector General IRS Criminal Investigation jointly participated case involvement coordinated successfully led concerted action initiatives yielding resultant sentencing outcomes conclusive indicative robust effective collaborative law enforcement integrative functional partnership endeavors effectively realized tangible substantive results attained comprehensive prosecution efforts underscored commitment upholding rule law fidelity core principles tenets justice adherence overarching objective mission mandate fulfilled collaboratively unified coordinated interagency taskforce operational dynamics synergistically harmonized collective focus concerted prioritization goals objectives aligned common purpose pursuit justice equitable accountability system operational efficacy maximized achieved optimal outcomes desired goal accomplished resolutely firmly upheld foundationally anchored principled ethos guided governance standards consistently applied across board universally inherent value integrity underpinning core foundation societal trust maintained confidence reinforced institutional structures legitimacy preserved unwavering steadfast adherence principles constitutional democratic governance respect enshrined assuredly irrevocably commitment fidelity ultimate realization justice equity balance reaffirmed demonstratively conclusively objectively transparently incontrovertibly definitive finality encapsulated encompassing entirety case conclusion

This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV with investigations conducted by U.S Department Health Human Services Office Inspector General IRS Criminal Investigation collaboratively leading coordinated efforts achieving resultant sentencing determination finality affirmed comprehensive approach undertaken ensuring lawful justice equitably served

###