A Southern California man has been sentenced to over two years in prison for his role in a childcare benefit fraud scheme that swindled a California welfare program out of millions. Mohamed Muriidi Mohamed, 47, from Spring Valley, will serve 27 months and must repay $3.7 million, as the Department of Homeland Security reported. The investigation that led to Muriidi's sentencing was a combined effort by HSI San Diego, the U.S. Department of Health and Human Services’ Office of Inspector General, and the U.S. Department of Housing and Urban Development’s Office of Inspector General.
In a statement, HSI San Diego acting Special Agent in Charge Christopher A. Davis condemned the defendants' actions, stating, "These thieves organized a financial scheme with the sole purpose of lining their pockets with ill-gotten money." He further remarked that the defendants not only stole from the government but also from American taxpayers. The fraudulent activities were orchestrated between Muriidi and three other individuals, Amina Abdirazak Omar, 41, Osob Abdirazak Omar, 33, and Omar Omar, 26, all residing in the San Diego area, according to the Department of Homeland Security.
U.S. District Judge Ruth Bermudez Montenegro also ordered Muriidi to pay restitution to Child Development Associates, one of the contractors that administers the Alternative Payment Program/Stage 2 Childcare funded by the Department of Health and Human Services. This program facilitates eligible parents' selection of a licensed childcare provider, an initiative administered in San Diego by Child Development Associates and the YMCA. These providers require various verification forms from parents, employers, and the children's schools to confirm eligibility for benefits.
Muriidi's ploy involved falsely verifying parents' attendance at the UMI Learning Center for work or schooling when, in fact, they were not participating in such activities. His scheme went as far as providing sham paychecks to parents, instructing them not to cash them. As a result, childcare providers submitted falsified attendance forms, claiming to have provided services for times when the parents were allegedly at the UMI Learning Center. The scheme prompted Child Development Associates and the YMCA to disburse approximately $3.7 million to about 150 households. At the same time, the defendants required parents to shell out $200 monthly to the UMI Learning Center and had childcare providers split the received funds.
