Rainbow Connection Child Care & Learning Center

Oklahoma City, OK 2013--2024 Childcare Centers
DOJ-USAO-WDOK USDA-OIG HHS-OIG Cacfp Fraud Obstruction Of Federal Audit Theft Federal Program Funds Covid Relief Fraud
Penalty
$500,000

Outcome

Priscilla Orange, owner of Rainbow Connection Child Care, was convicted by jury on all three counts — obstruction of a federal audit, and two counts of federal program theft — for submitting fraudulent CACFP food expense records during a 2021 audit and misusing nearly $500,000 in COVID-era childcare stabilization grants at local casinos.

Details

Rainbow Connection Child Care & Learning Center (Oklahoma City) — CACFP Fraud and COVID Relief Fund Diversion (2013–2024)

Outcome: Priscilla Orange, 67, owner and operator of Rainbow Connection Child Care & Learning Center with multiple Oklahoma City locations, was convicted by a federal jury in September 2025 on three counts — obstruction of a federal audit and two counts of federal program theft — for submitting false food expense records during a CACFP audit and gambling away nearly $500,000 in COVID-era childcare stabilization grants.

Rainbow Connection Child Care & Learning Center participated in the USDA Child and Adult Care Food Program (CACFP) beginning at least in 2013 and received approximately $1,555,000 in CACFP reimbursements over that period. In 2021, the Oklahoma Department of Education launched an audit of CACFP reimbursements paid to Rainbow Connection.

When federal auditors began reviewing Rainbow Connection's food-related expense submissions, Orange submitted fraudulent documentation to obstruct the audit — providing false records to mislead investigators about how CACFP funds had been spent. This audit obstruction charge reflects the additional federal crime of actively interfering with the audit process rather than merely misusing funds.

Separately, during the COVID-19 pandemic, the federal government provided childcare stabilization grants to help childcare providers maintain operations during the pandemic. Orange received substantial COVID-era grant funding that was intended for childcare operations. Instead, evidence at trial showed she diverted nearly $500,000 of those pandemic funds to gamble at local casinos and pay personal expenses, with no legitimate childcare purpose.

A federal grand jury indicted Orange in April 2025. After a two-day trial, a federal jury convicted her on all three counts on September 10, 2025. She faces up to 25 years in federal prison.

Primary Source: Oklahoma City Daycare Owner Convicted of Obstructing Audit and Embezzling Funds Meant for Childcare | DOJ

How Crucible Prevents This

Crucible's CACFP food-expense audit controls would require supporting documentation for all meal-related reimbursements and cross-reference claimed expense amounts against expected per-meal rates and enrollment counts. The audit-obstruction prevention protocol would require all audit documentation requests to be tracked and escalated if responses include materially false records. The COVID-relief grant fund-purpose controls would require quarterly reporting of grant fund expenditures with receipts, preventing diversion to casinos and personal expenses.

Source: Oklahoma City Daycare Owner Convicted of Obstructing Audit and Embezzling Funds Meant for Childcare | U.S. Department of Justice

Don't let this happen to your organization. See how Crucible works.

See How Crucible Works