Minneapolis man charged with $3M Medicaid fraud scheme

Minnesota Lawyer Basic Keith Ellison on Wednesday charged a Minneapolis man with greater than $3 million in Medicaid fraud linked to a state-licensed house well being company.

Mohamed Abdirashid Omarxeyd was charged with eight counts of theft by false assertion after prosecutors stated he used his firm, Guardian House Well being Companies, to invoice Minnesota’s Medicaid program for companies that have been by no means offered or have been ineligible for reimbursement from 2020 by 2024.

In accordance with the indictment, Guardian submitted fraudulent claims for private care companies, companion care, in-home help, respite care, individualized house assist companies, and different group assist companies. State officers have labeled many of those companies as “excessive threat” for fraud.

Prosecutors allege Omarxeyd and his spouse siphoned greater than $2 million from the corporate’s accounts through the scheme.

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Minnesota Lawyer Basic Keith Ellison speaks throughout a information convention after an ICE agent fatally shot Renee Nicole Good in Minneapolis, Minnesota, January 12, 2026. (Reuters/Tim Evans)

“Defrauding packages that present well being care to low-income Minnesotans is actually a despicable act,” Ellison stated. said in a statementnoting that his workplace has prosecuted greater than 300 Medicaid fraud circumstances and recovered greater than $80 million in restitution and fines.

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The costs stem from an in depth investigation focusing on fraud in a number of Medicaid-funded packages. Different fraud allegations contain housing stabilization companies and autism intervention packages.

Minnesota Lawyer Basic Keith Ellison speaks on stage through the third day of the Democratic Nationwide Conference on the United Heart on August 21, 2024 in Chicago. (Andrew Harnik/Getty Pictures)

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Prosecutors beforehand uncovered Feeding Our Future’s huge $250 million meals fraud case linked to the state’s Somali group.

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That fraud case resulted in dozens of indictments and convictions and put a highlight on fraud issues in Minnesota. Minnesota Governor Tim Walz has chosen to not run for a 3rd time period as a result of spreading scandal.

There’s at the moment no lawyer listed for Omarxeyd, whose first court docket look is Feb. 3.

Fox Information Digital’s Louis Casiano contributed to this report.