Owner of Minnesota Health Agency Charged for Multi-Million Dollar Medicaid Fraud

St. Paul, MN (MinnesotaNow)- The owner of a Minnesota-based health services agency has been charged in a multi-million dollar Medicaid fraud case. 

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That’s according to a news release issued by Minnesota Attorney General Keith Ellison. 

The owner of the agency, identified as 57-year-old Mohamed Abdirashid Omarxeyd, is facing eight counts of felony theft by false representation, according to a criminal complaint filed in Hennepin County Court. 

Owner of Minneapolis-Based Health Agency Accused of Stealing More Than $3 Million in Medicaid Funds

Omarxeyd is accused of using his Minneapolis-based agency to steal more than $3 million in Medicaid funds. 

The Minneapolis man is accused of billing Medicaid for services that were never provided, not provided as billed or ineligible for reimbursement from January of 2020 until January of 2024, the news release says. 

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The charges say the agency’s former employees admitted to never providing the services to recipients. 

A review of financial statements and witness interviews found Omarxeyd and his company paid recipients and responsible parties for services billed in their names that were never provided, the news release says. 

Investigators also found that $2 million of the money obtained through the Minneapolis agency went to other accounts owned by Omarxeyd and his wife, court documents indicate. 

Minnesota Department of Human Services Records indicate the agency closed in July of last year.