Regulators closed Trina's Treehouse on Cane Run Road in November 2013 after claims of abuse. They had closed Trina's on Broadway in 2011, following the death of a toddler who swallowed a push pin.
As a result of a two-year state investigation three other day care operators face similar charges.
Walker is accused of $1.2 million in C-CAP fraud and $26,000 in Medicaid Fraud for Caterpilllar Clubhouse and El Shaddai Christian Child Care.
King-Thompson is facing charges of more than $600,000 tax dollars in C-CAP fraud and $60,000 in welfare fraud at two centers known as Community Child Care.
Williams-Crawford is also accused of C-CAP fraud, more than $670,000, for billings at Payton's Playland.
Prosecutors said they dropped charges of Medicaid fraud against Williams-Crawford after she repaid more than $3,500.
In an email, Inspector General Maryellen Mynear told WAVE 3 News Kentucky will investigate and prosecute vigorously because benefit fraud is "a serious crime that steals precious, limited resources from deserving individuals who are legitimately in need and erodes confidence in government programs."