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Minneapolis resident faces charges for $3 million Medicaid fraud scheme

Minneapolis resident faces charges for $3 million Medicaid fraud scheme

Medicaid Fraud Charges Filed Against Minneapolis Man

Minnesota Attorney General Keith Ellison announced on Wednesday that a man from Minneapolis, Mohamed Abdirashid Omarshaid, faces charges exceeding $3 million in Medicaid fraud concerning state-licensed home health agencies.

Omarshaid has been charged with eight counts of felony theft by false representation. Prosecutors allege that between 2020 and 2024, he used his business, Guardian Home Health Services, to submit fraudulent bills to Minnesota’s Medicaid program for services that were never provided or eligible for reimbursement.

The criminal complaint indicates that Guardian improperly billed for a variety of services, including personal care assistance, companion care, housekeeping, respite care, and individualized home assistance. Many of these services are considered “high risk” for fraud by state officials.

It is claimed that Omarshaid and his wife diverted over $2 million from the company’s financial accounts throughout the fraud scheme.

Ellison condemned the act, stating that “defrauding a program that provides health care to low-income Minnesotans is truly despicable.” He highlighted that his office has taken action against more than 300 Medicaid fraud cases, recovering upwards of $80 million through restitution and fines.

The recent charges fit into a wider investigation focusing on fraud linked to various Medicaid-funded programs, which also includes cases related to housing stability services and autism intervention programs.

The investigation follows a significant $250 million food fraud case that was previously uncovered within Minnesota’s Somali community, leading to numerous indictments and bringing greater attention to the ongoing issues with fraud in the state.

Omarshaid’s attorney has not been identified at this time, and he is set to appear in court for the first time on February 3.

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