MINNEAPOLIS — On the heels of the massive Feeding our Future federal meal program fraud, the Minnesota Attorney General's Office is targeting another kind of scheme - Medicaid fraud - allegedly being committed by companies providing personal care assistant services.
Last week, the AG's office announced the first round of charges involving a company that allegedly stole $9.5 million dollars in taxpayer money. And courtroom testimony this week revealed another dozen companies are in the crosshairs.
Dozens of checks, totaling well over $100,000, were all written over the last 18 months from companies under investigation by the Attorney General's Office for suspected Medicaid fraud -- to Abdirashid Said –- even though he had already been ordered by a judge to no longer receive Medicaid payments after he was convicted of theft by swindle early last year.
It's part of an expansive investigation into suspected fraud involving companies providing Personal Care Assistant or PCA services.
Last week - the AG's office charged 18 people, including five with racketeering - alleging they used their company MN Professional to defraud Medicaid to the tune of $9.5 million dollars of taxpayer money.
PCAs help people, often elderly or disabled, who need assistance with things like grooming, bathing, eating, or using the bathroom.
Minnesotans meeting income requirements can receive these services through a Medicaid program administered by the Minnesota Department of Human Services.
The PCA companies submit paperwork documenting the services they've provided – and get reimbursements from the state.
In the Minnesota Professional case, the charges say they over-billed and double-billed and lined the pockets of friends and family members.
Abdirashid Said was convicted in a similar scam with his former PCA company.
Now, details of the rest of the AG's Medicaid Fraud Unit's continuing investigation are coming out in court as they accuse Said of violating his probation by receiving Medicaid money. The lead investigator testified that they have executed 50 search warrants over the last year, including at 11 different companies that paid Said for "consulting services."
Several of those companies operated out of the same nondescript building on Central Avenue in Minneapolis.
Search warrants allege show business and family relationships between the owners of the companies and a lot of red flags such as billing for dozens of the same recipients at the same time.
No one from these other businesses has been charged with a crime, but the Attorney General's Office says additional charges are expected.
John Lesch, the attorney for Abidrashid Said, said the state has made allegations that do not amount to a violation of his probation, and they are confident that the court will be able to see that.