President of UMI Learning Center Sentenced to 27 Months in Prison, Ordered to Pay $3.7 Million back in Stolen Childcare Benefits

NEWS RELEASE SUMMARY - August 21, 2024

SAN DIEGO - Mohamed Muriidi Mohamed was sentenced in federal court today to 27 months in prison for participating in a childcare-benefits fraud scheme that bilked a California welfare and benefits program of millions of dollars.

At today's hearing, U.S. District Judge Ruth Bermudez Montenegro also ordered Muriidi to pay $3.7 million in restitution to Child Development Associates.

The Department of Health and Human Services (HHS) funds a program known as "Alternative Payment Program/Stage 2 Childcare." This childcare benefits program allows eligible parents to select a licensed childcare provider that best fit a family's needs. In San Diego, this program is administered by two contractors: Child Development Associates (CDA) and the Young Men's Christian Association (YMCA). CDA and YMCA disburse the funding from HHS and the state of California directly to the designated childcare providers. In administering the program, CDA and YMCA require verification forms to be completed by the parent and the parent's employer and/or school.

Muriidi and his three co-defendants fraudulently caused CDA and YMCA to pay out millions in childcare benefit program funds by falsely verifying that parents were working or attending school at the UMI Learning Center, a vocational and language school located on University Avenue, although the parents were not actually participating in classes or employment as claimed. As part of the scheme, Muriidi also issued paychecks to make it appear that the parents were working at UMI but told the parents not to cash them. Meanwhile, childcare providers submitted daily childcare attendance forms falsely claiming that childcare was provided for days and hours when the parents were supposedly at UMI Learning Center for work or school. In exchange for these false verification forms, parents were expected to pay $200 to UMI Learning Center each month, and the childcare providers were expected to split the childcare benefit program funds they received with the parents. The defendants' scheme caused CDA and YMCA to pay out $3.7 million dollars in childcare benefit program funds to approximately 150 households.

Muriidi and his wife, co-defendant Amina Abdirazak Omar, received childcare benefits for their own children. Muriidi signed his own and his wife's verification forms for their own benefits under his alias to hide the fact that he was the one falsely verifying their presence at UMI. Amina Omar and her sister, co-defendant Osob Abdirazak Omar, and their brother, co-defendant Omar Omar, submitted false timesheets claiming Osob Omar and Omar Omar were providing childcare for Muriidi and Amina Omar's children for days and hours they were not.

Co-defendants Amina Abdirazak Omar, Osob Abdirazak Omar and Omar Omar have also pleaded guilty to the same charge. Osob Omar was sentenced on July 26, 2024, to 12 months and 1 day in custody and ordered to pay $298,910 in restitution. Omar Omar was sentenced on August 2, 2024, to 90 days in custody and ordered to pay $101,153 in restitution. Amina Omar is scheduled to be sentenced on October 4, 2024.

"These defendants stole money intended to provide safe care for children of working parents," said U.S. Attorney Tara McGrath. "The U.S. Attorney's Office is committed to safeguarding government funded programs like this one, so families can better manage the heavy burden of childcare expenses."

"These thieves organized a financial scheme with the sole purpose of lining their pockets with ill-gotten money," said Christopher A. Davis, acting special agent in charge for HSI San Diego. "The defendants in this case stole from the government and American taxpayers. We are committed to identifying fraudsters and bringing them to justice."

This case is being prosecuted by Assistant U.S. Attorney Valerie H. Chu and Special Assistant U.S. Attorney Lisa J. Sanniti.

DEFENDANTS Case Number 23CR0552-RBM

Mohamed Muriidi Mohamed Age: 47 Spring Valley

Amina Abdirazak Omar Age: 41 Spring Valley

Osob Abdirazak Omar Age: 33 San Diego

Omar Omar Age: 26 San Diego

SUMMARY OF CHARGES

Wire Fraud and Theft Conspiracy - Title 18, U.S.C., Section 371

Maximum penalty: Five years in prison and fine of the greater of $250,000, or twice the pecuniary gain or loss

INVESTIGATING AGENCIES

U.S. Department of Homeland Security, Homeland Security Investigations

U.S. Department of Health and Human Services, Office of the Inspector General

U.S. Department of Housing and Urban Development, Office of the Inspector General