More than $10 million stolen from Medicaid in two separate MN cases

Five people are facing charges as part of two separate Medicaid fraud cases totaling more than $10 million in stolen funds, Attorney General Keith Ellison announced on Wednesday.

In the first case, three individuals were charged with defrauding Medicaid out of more than $9 million. Abdifatah Yusuf and Lul Ahmed of Promise Health Services, LLC allegedly billed Medicaid for services that were never provided for home and community-based services.

Yusuf is charged with racketeering and six counts of felony aiding and abetting theft by swindle. Ahmed is charged with two felony counts of aiding and abetting theft by swindle.

"[The AG's Medicaid Fraud Control Unit] investigators determined that Yusuf and co-defendant Ahmed frequently used the money stolen from the Medicaid program to fund a lavish lifestyle, including directing over $1 million from the Promise business account into Yusuf’s personal account and withdrawing over $387,000 in cash," the attorney general's office writes. "Yusuf and Ahmed also spent more than $22,000 at furniture stores despite Promise lacking any physical office space, spent over $42,000 at luxury automotive dealers, and over $80,000 at luxury clothing stores including Coach, Canada Goose, Michael Kors, Third Degree Heat, Nike, and Nordstrom."

A third individual, Abdiweli Mohamud, is also facing charges for receiving $1.8 million in Medicaid funds for ineligible services through his company, Minnesota Home. He faces charges of racketeering and six counts of felony aiding and abetting theft by swindle.

In the second case, Charles Omato and LaTonia Jackson were charged with defrauding Medicaid of $1.4 million through their non-emergency medical transportation company, Driving Miss Daisy. The scheme involved billing for non-existent transportation services and "impossible" travel times.

Omato and Jackson both face multiple counts of aiding and abetting theft by false representation.

"Minnesotans who rely on 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 and our partners continue to work aggressively to hold these and all offenders accountable — and we will keep doing so," Attorney General Ellison said in a provided statement.