HERRIMAN — The owner and two employees of a child day-care center were arrested Friday afternoon for allegedly plotting to harm several other employees who had reported what they said were fraudulent activities at the day care to authorities.

Police arrested Michaele M. Meier, the 30-year-old owner and director of the Small Wonder Development Center, and booked her into the Salt Lake County Jail on suspicion of conspiracy to commit aggravated burglary, two allegations of insurance fraud and one of prescription fraud, Salt Lake County Sheriff's Sgt. Paul Jaroscak said.

Jaroscak said two employees were also arrested for the same reason of conspiracy. Jeremy Stewart, 28, of Kearns was booked into jail on warrants but bailed out before charges were listed in this incident. Jaroscak said police are seeking charges against him. The other employee, Leslie Zimmerman, 26, of Herriman was booked on insurance fraud and conspiracy to commit aggravated burglary.

Their alleged plot was thwarted about 1 p.m. when numerous investigators from the Salt Lake County Sheriff's Office with assistance from the Division of Child and Family Services served a search warrant at the Small facility, near 13200 South and 5700 West.

Sheriff Aaron Kennard said at least eight sources informed his investigators that the two people arrested were planning to execute a plot within the week to stage a home invasion robbery against three former employees and cause them physical harm.

The attack was to be carried out in retaliation for the former employees becoming whistle-blowers and being responsible for the day care's license being revoked by the state three weeks ago, Kennard said. The day care was allowed to remain in operation during the appeals process.

The subsequent investigation showed that Meier was allegedly defrauding customers by overbilling their bank accounts without their knowledge.

In one case a man discovered he was missing about $900, Kennard said. But in most cases, the owner would allegedly take small amounts of money that might go undetected from different accounts.

One of the whistle-blowers began warning parents before the police investigation began.

Meagen Bunten, whose 3-year-old daughter used to go to the day care, checked her bank account after she was tipped off, "and sure enough, I found a discrepancy (in my account)," she said.

"It was horrific. It was a parent's worst nightmare," she said. "I can't even believe someone would try to do that."