Mesbel Mohamoud, Health Care Fraud, California 2020

LOS ANGELES, California – Two Inglewood women, Mesbel Mohamoud and her mother-in-law Erlinda Abella, have been sentenced to federal prison for scheming to defraud Medi-Cal out of over $500,000 for services to clients who did not medically need substance abuse treatment and for services that were never provided.

Mesbel Mohamoud, 48, was sentenced to 18 months’ imprisonment by United States District Judge Philip S. Gutierrez, who also sentenced Mohamoud’s mother-in-law, Erlinda Abella, 66, also of Inglewood, to one year and one day in federal prison. Each woman was ordered to pay $260,101 in restitution.

Mohamoud and Abella pleaded guilty in November 2020 to one count of health care fraud.

Mohamoud was the owner and executive director of The New You Center Inc. (TNYC), located in the Vermont Knolls neighborhood of South Los Angeles. Abella, who co-founded TNYC with Mohamoud in 2005, was the company’s program director. TNYC was authorized to provide medically necessary substance abuse treatment services through the Drug Medi-Cal program to adults and teenagers in Los Angeles County.

From January 2009 to December 2015, TNYC submitted false and fraudulent claims for counseling sessions that were not conducted at all, were not conducted at authorized locations, or did not comply with Drug Medi-Cal regulations regarding the length of sessions or the number of clients.

Mohamoud and Abella also caused TNYC to bill for clients who did not have a substance abuse problem, to falsify documents related to services supposedly provided to clients, and to forge client signatures on documents such as sign-in sheets.

The FBI, the California Bureau of Medi-Cal Fraud and Elder Abuse, and the U.S. Department of Health and Human Services, Office of Inspector General investigated this matter. Assistant United States Attorney Cathy J. Ostiller of the Major Frauds Section prosecuted this case.

The total amount of false and fraudulent claims submitted by TNYC was approximately $527,313, for which the company was paid $260,101. Mohamoud and Abella’s scheme to defraud Medi-Cal has resulted in significant financial losses for the state and its taxpayers.

The sentencing of Mesbel Mohamoud and Erlinda Abella serves as a reminder of the importance of holding accountable those who seek to exploit the healthcare system for personal gain. It is a clear message that the authorities will not tolerate such behavior and will take swift action to bring perpetrators to justice.

Related Federal Cases