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 – personal care, companion care, respite, and more. These weren’t accidental errors; state officials had already flagged these specific services as particularly susceptible to fraudulent activity, indicating a deliberate targeting of the system.
The alleged scheme wasn’t just about billing for phantom services. Investigators discovered over $2 million was directly transferred from the company’s accounts, allegedly siphoned off by Omarxeyd and his wife. This points to a calculated effort to personally profit from a system meant to provide care.
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 broader investigation into fraud across multiple Medicaid-funded programs, including those focused on housing and autism intervention. The scope of the investigation suggests a systemic vulnerability being aggressively addressed.
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 ultimately contributed to the Governor’s decision not to seek a third term.
Omarxeyd is currently facing eight felony counts of theft by false representation, with his first court appearance scheduled for February 3rd. He does not currently have legal representation, and the state prepares to present its case against him.
