Minneapolis Man Charged for over $3 Million in Medicaid Fraud

A Minneapolis man has been charged for allegedly committing over $3 million in Medicaid fraud in conjunction with a state-licensed home health agency.

Minnesota Attorney General Keith Ellison filed the charges against Mohamed Abdirashid Omarxeyd on Wednesday on “eight counts of felony theft by false representation after prosecutors said he used his company, Guardian Home Health Services, to bill Minnesota’s Medicaid program for services that were never provided or were ineligible for reimbursement from 2020 through 2024,” per Fox News. The report went on:

According to the criminal complaint, Guardian submitted fraudulent claims for personal care aide services, companion care, homemaking, respite care, individualized home support and other community support services. State officials have designated many of these services as ‘high-risk’ for fraud.

Omarxeyd and his wife have been accused of siphoning more than $2 million from the company’s accounts.

“Defrauding programs that provide healthcare to low-income Minnesotans is a truly despicable act,” said Attorney General Keith Ellison. “Since I first took office, my team and I have prosecuted over 300 cases of Medicaid fraud and won over $80 million in restitution and recoveries.”

According to Valley News, Omarxeyd also stands accused of paying “workers less than legally required wages while pocketing the difference” along with with submitting “claims for workers who stated they never provided services.”

In one example, investigators found Omarxeyd billed for PCA services while the recipient was admitted to hospitals more than 20 times in 2022 and 2023, collecting over $7,500 for care that could not have been provided. Another worker told police she completed an application but never started work. Omarxeyd submitted claims reporting she provided up to 11.5 hours of daily services, and Medicaid paid Guardian over $11,000. Court documents show Omarxeyd personally received over $1.4 million from Guardian bank accounts, while his wife received more than $500,000, despite not being listed as a company employee or owner.

Assistant U.S. Attorney Joseph Thompson also revealed in December of last year that half of $18 billion in federal welfare funds, which supports 14 Minnesota-run programs since 2018, has been lost to fraud.

“Minnesota has become a magnet for fraud, so much so that we have developed a fraud tourism industry — people coming to our state purely to exploit and defraud its programs,” Thompson said. “This is a deeply unsettling reality that all Minnesotans should understand.”

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