“This defendant stole nearly $2 million in funds intended to feed underprivileged children,” said United States Attorney Sally Quillian Yates in a press release. “This critically important program provides basic sustenance for those most in need. Instead of paying for school day nutrition, he used the money to expand his daycare business, lease luxury cars, buy jewelry, and pay for other personal expenses."
According to Yates, the charges and other information presented in court: Between 2007 and 2010, Hurt served as the Chief Executive Officer of Bright Star Early Learning Center, which owned and operated multiple daycare centers throughout metropolitan Atlanta, and in other parts of north Georgia under the name, “Bright Star.”
Hurt also entered into franchise agreements that allowed multiple additional third-party daycare centers to operate under the “Bright Star” name.
In February 2006, Hurt arranged for Bright Star Early Learning Center
to apply to participate in the Child & Adult Care Food Program
(“CACFP”). CACFP, which is funded by the U.S. Department of
Agriculture under the National School Lunch Act of 1964, is a federal
program that partially reimburses daycare centers for the cost of
serving breakfast and lunch to eligible children whose family
income falls below certain thresholds.
In Georgia, the program is administered by the Georgia Department of Early Care & Learning. Child and adult care centers that are eligible to participate in the program are required to submit monthly claims to the Department of Early Care & learning which detail the number of eligible students, meals, and other information for each 30-day period. The Department of Early Care & Learning then reimburses the daycare centers.
Beginning in October 2007 and continuing through January 2010, Hurt
submitted millions of dollars in CACFP reimbursement claims
to the Department of Early Care & Learning on behalf of his own
daycare centers and his franchisees. Hurt’s reimbursement claims
intentionally misstated the number of eligible students, meals, and
As a result, the Department of Early Care
& Learning issued fraudulently inflated reimbursement funds to an
account that Hurt controlled. Hurt then issued the expected payments to
the unsuspecting daycare centers, and retained the fraudulently
inflated portion for himself, amounting to approximately
$1.9 million over a two-year period.
Hurt, 38, of Baltimore, Md., used the money to expand and
fund the operation of his daycare business, obtaining multimillion
dollar acquisition and development loans to build new daycare centers,
and in order to live beyond his means.
Sentencing is scheduled for June 18, 2014.