Minneapolis Man Charged with $3 Million Medicaid Fraud
A man from Minneapolis is facing charges for allegedly defrauding the Medicaid system of over $3 million, linked to a licensed home health agency.
Minnesota’s Attorney General, Keith Ellison, filed charges against Mohamed Abdirashid Omarshaid, accusing him of eight felony counts related to theft by false representation. Prosecutors claim he utilized his business, Guardian Home Health Services, to submit fraudulent medical bills for services that either weren’t rendered or weren’t eligible for reimbursement from 2020 to 2024.
As detailed in the criminal complaint, Guardian supposedly billed for various services such as personal care assistance, companion care, and others, some of which the state has flagged as high-risk for fraud.
Omarshaid and his spouse are accused of illegally taking over $2 million from the company’s accounts.
“Defrauding a program meant to provide healthcare for low-income Minnesotans is reprehensible,” remarked Attorney General Ellison. He added that his team has pursued more than 300 Medicaid fraud cases and recovered over $80 million since he assumed office.
Reports also indicate that Omarshaid is charged with paying his workers below the legal wage and claiming payment for services not actually performed by them.
For instance, investigators uncovered that he billed for personal care assistance while being hospitalized more than 20 times in 2022 and 2023, earning over $7,500 for care he couldn’t provide.
Additionally, one worker stated they completed the necessary paperwork but never started working, yet Omarshaid reported that she provided up to 11.5 hours of services daily, resulting in over $11,000 from Medicaid for Guardian.
Court documents reveal that Omarshaid personally withdrew over $1.4 million from Guardian’s bank account, while his wife took in more than $500,000 despite not being an employee or owner.
In December, Assistant U.S. Attorney Joseph Thompson noted that half of the $18 billion in federal welfare funds supporting 14 programs in Minnesota has been lost to fraud since 2018.
“Minnesota has essentially turned into a hub for scams, almost like a tourism industry for fraud,” Thompson commented. “This is concerning, and it’s something everyone in Minnesota should be aware of.”
