Federal prosecutors say two Minneapolis men turned a Medicaid benefit for vulnerable Minnesotans into their personal cash machine, hauling in about $3.6 million through bogus housing support claims.
A federal grand jury on Wednesday indicted Muhammad Abdulqadir Omar and Ibrahim Bashir Abdi, accusing them of using two companies, North Home Health Care LLC and South Home Health Care LLC, to file false and inflated bills for housing services that were supposed to help seniors and people with disabilities. Both men are charged with conspiracy to commit health care fraud and health care fraud.
Court filings reviewed by KARE 11 say North Home Health Care billed about $3.3 million and collected roughly $3.2 million in Medicaid reimbursements. South Home Health Care allegedly billed about $490,000 and received about $480,000.
According to the indictment, the companies billed for services that never happened, padded the number of hours provided, and even submitted claims for people who could not possibly have received care. One entry allegedly billed 92 hours of services for a person who was already dead. Prosecutors say some of the proceeds went into real estate in Nairobi, Kenya, and that Omar used the money to lease a Mercedes. Court papers also say an internal compliance manager raised red flags about the billing, but they were ignored.
The case is part of a widening federal crackdown on fraud in Minnesota’s Housing Stabilization Services program, a Medicaid benefit that exploded into a multi-million-dollar operation and, according to prosecutors, became fertile ground for abuse. As described by the U.S. Attorney’s Office, rapid growth and relatively light documentation requirements left the program vulnerable and have already produced a string of indictments and guilty pleas.
How prosecutors say the fraud worked
Prosecutors allege Omar and Abdi’s companies gathered names of Medicaid beneficiaries and then submitted inflated or outright fabricated claims for housing consultation, transition and sustaining services that were never delivered. Court filings say the paperwork and staffing were sometimes invented or misrepresented to give the appearance that legitimate services were being provided, according to documents reviewed by KARE 11.
Legal exposure
Both defendants face federal counts of conspiracy to commit health care fraud and health care fraud. In similar health care fraud cases, the Department of Justice guidance notes that such charges can carry prison terms of up to 10 years, along with substantial fines and restitution orders.
An indictment is only an accusation, not proof of guilt. Omar and Abdi are presumed innocent unless and until prosecutors convince a jury or secure a guilty plea. Any eventual sentence would hinge on the proven loss amount, potential sentencing enhancements, and the outcome of trial or plea negotiations.
This latest indictment adds to months of enforcement activity that has already prompted Minnesota officials to hit pause and retool key pieces of the Housing Stabilization Services benefit as allegations piled up. For background on the program’s unraveling and earlier state actions, see the program’s unraveling.
