Charges Filed in Massive Minnesota-Based Medicaid Fraud Scheme
A news release issued by the Attorney General’s office says the five defendants are leaders of a personal care company called MN Professional. They are among 18 people facing charges connected to the alleged fraud, which Ellison’s office says is “largest Medicaid fraud prosecution charged by Attorney General’s Office.”
Ellison alleges the scheme defrauded the Minnesota Medical Assistance (Medicaid) program out of nearly $10 million. He said the defendants obtained $1.6 million by fraudulently billing the Medicaid program for more than 25,000 hours of services that were not provided.
The leaders of MN Professionals are also accused of violating a state supervision law. Ellison says the company got $7.8 million from the program by falsely claiming their services were supervised by a professional nurse or qualified professional.
The news release accuses the defendants of hiding their windfall through an elaborate check-cashing scheme. They also claimed their family members held board positions and consultant posts that paid six-figure salaries that were paid to joint bank accounts with the defendants.
The five individuals charged in the scheme are Abdikarim Mohamed and Ahmed Nur, along with managers Abubakar Ahmed and Ali Elmi and biller Omar Dirie. They were each charged in Hennepin County District Court with one count of racketeering, one count of engaging in business of concealing criminal proceeds, and eleven counts of aiding and abetting theft by swindle (over $35,000).
“Minnesotans who receive Medical Assistance have a right to expect they’ll receive all the care, dignity, and respect they’re entitled to. Minnesotans trying to afford their lives have a right to expect that every one of their tax dollars will be spent properly and legally. People who commit Medicaid fraud violate both of those rights. My office is working aggressively to hold these and all offenders accountable — and we will keep doing so,” Attorney General Ellison said in the news release.
The Attorney General’s Office says seven other individuals have been charged for serving as recruiters, an office manager, or PCAs. Six individuals were previously charged, five of whom pleaded guilty. Additional charges are expected against other individuals as the investigation continues.