Westchester County Employee Arrested for Alleged Daycare Shakedown Scheme
Cheryl Spencer, a social services audit clerk, is accused of demanding payments in exchange for issuing reimbursement checks
August 5, 2025
WHITE PLAINS, N.Y. – Westchester County District Attorney Susan Cacace announced that a Department of Social Services (DSS) Senior Audit Clerk was arrested Tuesday and charged as part of an alleged shakedown scheme involving daycare providers that serve underprivileged residents.
Cheryl Spencer, 61, of Mount Vernon, was arraigned Tuesday afternoon in White Plains City Court on five counts each of Bribe Receiving in the Third Degree, a class D felony, Criminal Solicitation in the Fourth Degree, a class A misdemeanor, and Official Misconduct, a class A misdemeanor.
Judge Eric Press released the defendant on her own recognizance, as none of the charges are bail-eligible. Judge Press provided temporary orders of protection to each of the victims in this case and ordered the defendant to surrender all of her firearms.
DSS has placed Spencer on administrative leave, without pay, pending disciplinary charges or any further action by the county.
She is due back in court on Aug. 26.
DA Cacace said: “The brazenness of this defendant’s alleged conduct is particularly outrageous. As alleged, Ms. Spencer preyed on daycare providers serving financially struggling families, placing their facilities at serious risk of closure.
“Not only is she accused of a serious breach of public trust, but she allegedly exploited a vulnerable population in order to line her own pockets.
“I am grateful for the work of the New York State Inspector General’s Office and IG Lucy Lang, whose partnership was instrumental in today’s arrest.”
IG Lucy Lang said: “Affordable child care is mission critical for many New Yorkers, but particularly for struggling families. It is shocking that a public servant responsible for supporting the daycare programs that enable parents and other caregivers to remain in the workforce or attend school would abuse the public trust. Thank you to DA Cacace, her team and my team at the Offices of the New York State Inspector General, who share a commitment to ensuring accountability for public corruption so that child care providers can do the hard work of caring for New York’s children without being exploited by those who would seek to use their positions of power to enrich themselves.”
As part of the Child Day Care Assistance program, the county provides financial assistance for daycare expenses to eligible families. This assistance is transmitted from DSS directly to the daycare provider.
Between June 1, 2024, and April 4, 2025, Spencer received complaints from five daycare providers located in Westchester regarding late or missing reimbursement checks, according to a felony complaint.
As a DSS Senior Audit Clerk in the Daycare Payment Processing Unit, Spencer was responsible for processing these checks and their associated paperwork.
In September 2024, Spencer received a complaint from the owner of a daycare provider (Daycare Provider 1) regarding late or missing reimbursement checks. Daycare Provider 1 explained that these late payments were causing a significant amount of anxiety and that without timely payments, her daycare facility may not be able to continue operating.
In response, Spencer told Daycare Provider 1 that she would have to pay Spencer money in order for the paperwork to be processed, the felony complaint alleges.
On Oct. 2, 2024, Daycare Provider 1 paid Spencer $200 in cash, according to the felony complaint. Daycare Provider 1 received her DSS reimbursement check in the mail several days later.
Over the ensuing months, Daycare Provider 1 paid Spencer over $1,000 to continue receiving timely reimbursement checks, the felony complaint alleges.
At least four other daycare providers in Westchester County are alleged to have been victimized in a similar fashion.
During the execution of a search warrant Tuesday morning, investigators recovered a loaded, unsecured .380 caliber Smith & Wesson from the defendant’s vehicle. Spencer is a licensed gun owner, and this weapon was on her pistol permit.
Upon executing another warrant at a second car registered to the defendant, investigators recovered a loaded .45 caliber Star semi-automatic pistol. The defendant’s husband, a convicted felon, was subsequently arrested and charged with Second-Degree Criminal Possession of a Weapon.
The Westchester County District Attorney and New York State Inspector General encourage anyone with information related to this scheme, including daycare providers, to contact the DA's tip line at (914) 995-TIPS (8477).
The case was investigated by the New York State Inspector General’s Office and the Westchester County District Attorney’s Office.
The case is being prosecuted by Assistant District Attorney Sheila Horgan, of the Public and Law Enforcement Integrity Bureau.
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The charges against the defendants are merely accusations, and the defendant is presumed innocent unless and until proven guilty.