Zelda's Love & Happiness Child Care was searched Wednesday, the Milwaukee Journal Sentinel reported. Detectives said they found a loaded Sig Sauer handgun, an ammunition clip for another gun and 2 1/2 ounces of marijuana.
Zelda Jackson, who owns the center and another day care, told the newspaper the gun and drugs were not hers. She said she is appealing her suspension from a state subsidy program and denies any wrongdoing.
Jackson received $1 million in subsidies from 2007 through August, state officials say. An investigation began when the state found most of the children getting state subsidies were children of her employees.
One investigator reported that in several visits to one day-care center she never found more than four children on the premises, far fewer than the number being subsidized.