Charges: 'Massive' public benefits fraud alleged in Ramsey County

A husband and wife from Fridley and two accomplices allegedly duped the state out of about $4 million by falsifying work records at their home health care and child care businesses and funneling some of that money into another family-owned enterprise to cover their tracks.

The alleged fraud is the largest ever in the state's child care assistance program, said Jerry Kerber, the Minnesota Department of Human Services inspector general. Ramsey County Attorney John Choi, whose office filed 96 felony counts Tuesday in the case, said the "massive" scheme took two years to investigate and led authorities down a rabbit hole of criminal activity.

"Every time we picked up a stone, there was more for us to look at," Choi said Wednesday at a news conference.

Charged are: Yasmin A. Ali, 33, of Fridley; Joshua J. Miller, 31, of St. Paul; Ahmed A. Mohamed, 46, of Fridley; and Jordan C. Smith, 31, of Cottage Grove.

The four face counts that include racketeering, theft by swindle, identity theft, filing false tax returns and concealing criminal proceeds.

Ali faced the most charges — 52 felonies — and appears to be a key leader in the fraud, according to charges. She is married to Mohamed, who was charged via arrest warrant and was not in custody as of Wednesday evening.

Ali and Miller were booked into the Ramsey County jail Wednesday, and are scheduled to appear in court Thursday afternoon.

Miller and Mohamed did not have attorneys listed, but attorneys representing Ali and Smith said they are prepared to move forward.

"I plan to try this case in the courtroom, and I anticipate that we are going to be successful," said Ali's attorney, Tom Shiah.

Smith's attorney, Adam Johnson, said his client will make a first appearance in court in January, and "see where things go." Smith allegedly submitted false claims for personal care assistant work at Miller's direction.

According to the charges: From 2009 to 2012, Ali, Mohamed and Miller owned and operated a group of businesses, including All Nations Home Health Care, Deqo Family Center, Deqo Family Center 2 and Deqo Family Center 3 that were used to swindle the state out of millions.

The defendants allegedly submitted false claims for personal care assistant work through All Nations, collecting $500,000 from the state.

The mothers were also asked to work as employees. The defendants then allegedly filed false time records of the mothers' employment, inflating their actual work hours. From April 2012 to January 2013, the defendants allegedly collected more than $3 million.

Authorities allege that Ali and Mohamed concealed their profits by paying "grossly inflated" prices for meals at their child care centers to a business owned by Ali's three brothers, Deg Deg Grille.

Charges also allege that Ali solicited more than $450,000 from individuals by promising them stock in Deqo.

Some investors were paid but did not receive equity in the company.

Two harassment restraining orders filed by Ali and Mohamed earlier this year show that they were facing threats because of their alleged crimes. Ali and Mohamed listed the subjects of their orders as former co-workers.

The petition said the "respondent," or subject of that order, a Brooklyn Park man, threatened to pass out leaflets in the Somali community to damage their names.

"I am scared," said Ali and Mohamed's petition.

A leaflet included in the couple's petition read, "The Truth is Out!!!!" It accused Ali and Mohamed of taking more than $300,000 from the African community through an enterprise called Bright Future Penny Auction Ltd.

"They deceived us and they are using the community money to open new stores in North town Mall (sic.), etc," the leaflet said.

In another petition filed against a Fridley woman, the couple wrote, "She said that money cannot buy children. I am very afraid of her."