Social Services Audit Clerk Accused Of 'Brazen' Daycare Shakedown Scheme: DA

WHITE PLAINS, NY — A Westchester County employee tasked with looking out for the most vulnerable in our community, instead used her authority to enrich herself, according to disturbing allegations by the New York State Inspector General's Office and the Westchester County District Attorney's Office.

Westchester County District Attorney Susan Cacace announced that the Department of Social Services (DSS) senior audit clerk was arrested Tuesday and charged in connection to a 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 and official misconduct.

The judge released Spencer on her own recognizance, as none of the charges are bail-eligible. Judge Press also provided temporary orders of protection to each of the victims in the case and ordered Spencer to surrender all of her firearms.

The 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.

"The brazenness of this defendant’s alleged conduct is particularly outrageous," DA Cacace said. "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."

Cacace said state investigators played a key role in bringing the alleged misconduct to light.

"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."

For her part, Lang said she found the allegations especially galling.

"Affordable child care is mission critical for many New Yorkers, but particularly for struggling families," Lang said in a statement. "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, Westchester 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 the felony complaint.

As a DSS senior audit clerk in the Daycare Payment Processing Unit, Spencer was responsible for processing these checks and their related paperwork.

In September 2024, Spencer received a complaint from the owner of a daycare provider about late or missing reimbursement checks. The daycare provider 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 that daycare provider that she would have to pay Spencer money in order for the paperwork to be processed, the felony complaint alleges.

On Oct. 2, that provider paid Spencer $200 in cash, according to the felony complaint. The daycare provider then received her DSS reimbursement check in the mail several days later.

Over the following months, the daycare provider paid Spencer over $1,000 to continue receiving timely reimbursement checks, the felony complaint alleges.

At least four other daycare providers in Westchester County have been victimized in a similar fashion, according to the DA.

"The allegations against Cheryl Spencer, a Department of Social Services employee accused of accepting bribes related to the administration of daycare payment assistance, are deeply troubling and egregious," Westchester County Executive Ken Jenkins and Commissioner of Social Services Leonard Townes said in a joint statement released Tuesday afternoon. "The integrity of our public assistance programs is critical to the families who rely on them, and any breach of that trust is completely unacceptable. While this matter is now in the hands of the New York State Inspector General's Office and the Westchester County District Attorney's Office, Westchester County intends to fully cooperate with the investigation, and will continue to review our internal procedures to ensure accountability and transparency. Westchester County remains committed to serving our residents with fairness, integrity, and the highest ethical standards."

During the execution of a search warrant Tuesday morning, investigators recovered a loaded, unsecured .380 caliber Smith & Wesson from Spencer's vehicle. She is a licensed gun owner, and this weapon was on her pistol permit.

Upon executing another warrant at a second car registered to Spencer, however, investigators recovered a loaded .45 caliber Star semi-automatic pistol. Spencer's husband, a convicted felon, was then arrested and charged with second-degree criminal possession of a weapon.

The Westchester County District Attorney and New York State Inspector General are encouraging anyone with information related to this scheme, including daycare providers, to contact the DA's tip line at 914-995-TIPS (8477).