Sterling Heights police say the man accused of the crime lives at the scene of the crime.
Anthony Trandell, 18, is charged with two counts of second degree criminal sexual conduct involving a 3-and-1/2-year-old girl. Police say the defendant's mother was providing the daycare for the victim and at least two other children.
"Trandell's mother ran a daycare center out of her home and it happened while she was out of the area where the children were, I believe preparing lunch, and that's when Anthony was with the children and the incident occurred, said Sterling Heights Police Lt. Luke Riley.
According to police, Trandell used a blanket to conceal the activity.
"In the evening, relayed what had happened to her parents who of course reported it to us," said Riley.
Trandell was arraigned Wednesday and released on a $100,000 cash bond. He has to wear a tether and stay away from the child making the accusation.
The home was not licensed as a day care center. Child Protective Services is investigating.