MINNEAPOLIS, MN — The operator of a Minneapolis-based home health agency faces felony charges for allegedly defrauding Minnesota's Medicaid program of more than $3 million by billing for services that were never provided, according to charges filed by the Minnesota Attorney General's office.
Mohamed Abdirashid Omarxeyd was charged with eight counts of felony theft by false representation on January 14, 2026, according to Attorney General Keith Ellison. The charges stem from a multi-year investigation into Guardian Home Health Services, which allegedly submitted fraudulent claims for personal care assistance, companion care, homemaking services, respite care, individualized home supports, and comprehensive community support services between January 2020 and January 2024.
According to the criminal complaint, Omarxeyd operated a systematic scheme in which services were billed to Minnesota Medical Assistance even when they were not provided, were not delivered as claimed, or were ineligible for reimbursement. Former employees of Guardian Home Health Services reportedly acknowledged they did not provide services to recipients but worked with Omarxeyd to submit claims anyway, as reported by the Attorney General's office.
The investigation revealed that Omarxeyd and Guardian Home Health Services paid recipients and their responsible parties directly while simultaneously billing the state Medicaid program for services in those same individuals' names, according to prosecutors. Financial records examined during the investigation showed that Omarxeyd, his wife, and unrelated companies he owned received over $2 million from Guardian's accounts during the period when the alleged fraud occurred.
"Defrauding programs that provide healthcare to low-income Minnesotans is a truly despicable act," Attorney General Ellison stated in announcing the charges. "That's why I charged one such fraudster who stole over $3 million from the people of Minnesota."
According to CBS News reporting, Omarxeyd allegedly directed staff to "bill as much as they could to make more money regardless of whether they performed the work." Prosecutors also claim that claims were submitted for services when clients were incarcerated or hospitalized and unable to receive home health care.
A co-defendant, Maryan Garad, was also charged in Hennepin County in connection with the alleged fraud scheme, as reported by CBS News.
The Minnesota Department of Human Services had previously designated some of the services that Guardian billed for as high-risk provider types, according to the Attorney General's announcement. Minnesota DHS Inspector General James Clark confirmed that his office investigated the provider, uncovered credible evidence of fraud, and took action to withhold payments.
Broader Context on Medicaid Fraud
The Guardian Home Health Services case represents part of a larger enforcement effort against Medicaid fraud in Minnesota. Attorney General Ellison noted that since taking office in 2019, his Medicaid Fraud Control Unit has prosecuted over 300 cases and recovered more than $80 million in restitution and recoveries.
In response to ongoing concerns about fraud in home health services, Minnesota officials announced plans to freeze new enrollments for 13 high-risk Medicaid services, according to Fox News reporting.
The investigation into Guardian Home Health Services involved multiple agencies, including the Minnesota Bureau of Criminal Apprehension, the Minnesota DHS Forensic Lab, and the Attorney General's Medicaid Fraud Control Unit. Local law enforcement agencies from Maple Grove, Bloomington, and Brooklyn Park assisted with executing search warrants, according to prosecutors.
The case was initially referred to the Medicaid Fraud Control Unit following an administrative investigation by the Minnesota Department of Human Services Medicaid Provider Audits and Investigations Division.
Understanding Home Health Medicaid Fraud
Federal and state Medicaid programs provide essential healthcare services to low-income and vulnerable populations, including elderly and disabled individuals who require home health assistance. According to federal regulations, providers must deliver services as claimed and maintain accurate documentation to receive reimbursement.
Common fraud schemes in home health care include billing for services not rendered, submitting claims for ineligible services, upcoding to receive higher reimbursement rates, and billing for more time than was actually spent providing care. Such fraud diverts taxpayer dollars intended for vulnerable patients and undermines the integrity of safety-net healthcare programs.
The Minnesota Attorney General's Medicaid Fraud Control Unit receives 75% of its funding from the U.S. Department of Health and Human Services, with the remaining 25% provided by the State of Minnesota. The unit's mission includes investigating and prosecuting individuals and organizations that steal from Medicaid and those who exploit, neglect, or abuse vulnerable victims.
Resources for Families
Families who suspect Medicaid fraud or have concerns about the quality of home health services can contact:
- Minnesota Attorney General's Office: (651) 296-3353 (Twin Cities) or (800) 657-3787 (Greater Minnesota) - National Long-Term Care Ombudsman Resource Center: 1-800-677-1116 - Minnesota Department of Human Services: Report suspected fraud through the DHS website or fraud hotline
Individuals with information about Medicaid fraud are encouraged to report concerns to appropriate authorities. Whistleblower protections exist under federal and state law for those who report fraud in good faith.
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