In September 2015, Ummah Child Care Center, Inc. was charged in Hennepin County with theft by
swindle, a felony, for improper billing resulting in fraudulently obtaining
state program funding. Ummah pleaded
guilty on January 3, 2017.
As a result of the conviction, the center was ordered to pay
$37,000 in restitution and a $10,000 fine. In addition, on September 28, 2015,
the date the criminal complaint was filed, the center had its assets frozen.
Once the restitution and fines are paid to the Department of Human Services (DHS)
and Hennepin County District Court, respectively, the freeze on Ummah Child
Care Center’s bank account will be lifted.
The center, which became a licensed child care facility in
August 2013, is one of the largest recipients of Child Care Assistance Program (CCAP)
funds in the state. Based on the high level of billing by this center, along
with additional information, an investigation of the child care center took
place over 31 days between April 24 and June 21, 2015. The investigation involved
counting the number of children who entered the child care center over this
time period.
During a single week in April, Ummah billed for 551 children
even though investigators observed 459 children attending the center. That
means the center billed for 92 children who did not actually attend the center
that week.
When calculating the degree of fraud, DHS investigators used
the lowest billing rate (the amount charged for a school age child) even though
many of the children seen entering the center were likely younger and therefore
billed at a higher rate. During this particular week of the investigation,
Ummah fraudulently received $4,944. Overall, during the surveillance period
Ummah submitted bills and obtained CCAP funds for 2,253 children attending the
center when actually only 1,896 children were present during that time.
In addition to being charged with theft by swindle, and
paying restitution and a court fine, the authorized biller for Ummah Child Care
Center, Hamdi Ahmed Nur, agreed to be disqualified from working for, owning or
being involved in a child care center or child care provider that is required
to be licensed by DHS or any county, or receive funding from CCAP. The
disqualification will last two years after which time Ahmed Nur will be subject
to a background study as is required of all licensed child care providers.
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