A Minneapolis man now faces felony charges following a stunning revelation of Medicaid fraud, totaling over $3 million. Mohamed Abdirashid Omarxeyd allegedly exploited a state-licensed home health agency, Guardian Home Health Services, to systematically drain funds from a vital program designed to support vulnerable Minnesotans.
From 2020 to 2024, prosecutors claim Guardian submitted claims for services that simply never happened – or for care that wasn’t eligible for reimbursement. These weren’t minor discrepancies; the alleged scheme involved a wide range of services, including personal care, companion care, and specialized support for individuals in their homes. State officials had already flagged these very services as particularly vulnerable to fraudulent activity.
The alleged deception didn’t stop at inflated billing. Investigators discovered over $2 million was directly transferred from the company’s accounts into the pockets of Omarxeyd and his wife, painting a picture of deliberate and calculated theft. This wasn’t merely an accounting error; it was a systematic siphoning of public funds.
The Attorney General’s office condemned the alleged actions as a particularly egregious betrayal of trust. “Defrauding programs that provide healthcare to low-income Minnesotans is a truly despicable act,” stated the Attorney General, highlighting a dedicated effort to combat such crimes, with over 300 Medicaid fraud cases already prosecuted and more than $80 million recovered.
This case isn’t isolated. It’s part of a larger, sweeping investigation into fraud across multiple Medicaid-funded programs, including those focused on housing and autism intervention. The investigation reveals a troubling pattern of exploitation within the state’s social safety net.
The unfolding scandal echoes a previous, massive fraud case – the $250 million “Feeding Our Future” scheme, which also impacted the state’s Somali community. That case led to numerous indictments and convictions, and brought intense scrutiny to fraud vulnerabilities within Minnesota’s programs.
The fallout from these investigations has already reached the highest levels of state government. The governor chose not to seek a third term, a decision widely speculated to be linked to the growing concerns surrounding these widespread fraud allegations.
Omarxeyd is scheduled for his first court appearance on February 3rd. He currently does not have legal representation, and the state prepares to present its case against him, seeking justice for the alleged theft of millions intended for those most in need.