President of local school sentenced for childcare benefits fraud

SAN DIEGO (FOX 5/KUSI) -- The president of an education center in the Rolando Park neighborhood was sentenced to 27 months in prison Wednesday for his involvement in a multi-million dollar childcare benefits fraud scheme.

On Wednesday, the U.S. Attorney's Office said Mohamed Muriidi Mohamed, 47, of Spring Valley was one of four people who caused two agencies to pay out millions of dollars in childcare program funds by falsely claiming parents were working at or attending school at the UMI Learning Center although they were not.

The two agencies -- Child Development Associates (CDA) and the Young Men's Christian Association (YMCA) -- administer funds as part of a childcare benefits program under the Department of Health and Human Services. To distribute money, CDA and YMCA both require verification forms to be completed by the parent and their employer and/or school.

Federal prosecutors stated that Muriidi issued paychecks to make it seem as if the parents were working at the school but told them not to cash them out.

As part of the scheme, childcare providers submitted daily attendance forms that claimed they cared for children while their parents were supposedly working or learning at the school, according to prosecutors.

In exchange for the forms, parents had to pay $200 to UMI Learning Center each month, and the providers were expected to split the money they received from childcare benefit program funds with the parents, prosecutors added.

This resulted in CDA and YMCA paying out $3.7 million dollars in funds to approximately 150 households, according to the attorney's office.

Muriidi and three co-defendants were charged with wire fraud and theft conspiracy.

In addition to spending 27 months in prison, Muriidi was ordered to pay $3.7 million in restitution to CDA.

His co-defendants include his wife, Amina Abdirazak Omar, her sister, Osob Abdirazak Omar, and their brother, Omar Omar. They have also pleaded guilty to the same charge.

Osob was sentenced on July 26 to 12 months and one day in custody and ordered to pay $298,910 in restitution. Omar was sentenced on Aug. 2 to 90 days in custody and ordered to pay $101,153 in restitution. Amina is scheduled for sentencing on Oct. 4.