Six Arrested in South Portland Home Healthcare Agency Fraud Scheme

Federal Indictment Targets South Portland Home Health Agency in MaineCare Fraud Scheme

Six people connected to a South Portland personal care agency were arrested following a federal grand jury indictment accusing them of running a multi-year healthcare fraud scheme that drained hundreds of thousands of dollars from MaineCare, federal prosecutors announced. The arrests center on Community Home Health Care, LLC, highlighting federal scrutiny over how state Medicaid funds are billed.

According to the U.S. Attorney’s Office for the District of Maine, the company systematically billed the state’s Medicaid program for personal care services that were never actually delivered to clients. Federal investigators say that since 2020, the agency collected more than $600,000 for care purportedly provided to a single client, though the business later reversed roughly $35,000 of those payments.

Arrests and Specific Charges Filed by the Grand Jury

The indictment, handed down on Thursday, Oct. 22, and detailed during a Tuesday news conference by U.S. Attorney Andrew Benson alongside the FBI, IRS, and other federal partners, names the company’s owner alongside five employees. All six defendants are United States citizens, according to prosecutors.

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Noora Abd, 37, the owner and operator of Community Home Health Care, and 51-year-old Faysal Kalayaf Manahe face charges of healthcare fraud conspiracy and obstructing a healthcare fraud investigation. Mohammed Alkhalaf, 41, was indicted on counts of healthcare fraud conspiracy and making false statements. Meanwhile, Adel Al Rashid, 47, Sura Almohammed, 47, and Ethar Alyaseen, 46, were each charged with healthcare fraud conspiracy.

Federal investigators allege the participants bypassed electronic verification safeguards by sharing and transferring Electronic Visit Verification (EVV) usernames and passwords. These credentials were reportedly used to generate false records showing caregivers provided in-home assistance when no such visits occurred. WGME reported that the indictment specifically accuses Alkhalaf of using coworkers’ login credentials and falsely telling an FBI agent on June 23 that he had never logged hours for anyone other than himself.

Six people charged in MaineCare fraud scheme in South Portland

Prosecutors also allege that after learning about the unfolding federal inquiry, Abd and Manahe actively discouraged another individual from speaking with law enforcement and instructed them to provide investigators with false information.

State Suspensions and the Human Toll on Workers and Clients

The federal charges follow administrative actions taken earlier this year by state regulators. On August 5, the Maine Department of Health and Human Services (DHHS) announced it had suspended payments to five MaineCare providers due to credible allegations of fraud. Investigations by local outlets confirmed that Community Home Health Care was among those targeted by the state payment freeze.

This file photo shows the exterior of the building at 184 Main St. in South Portland, Maine, the address for Community Home — Photo: wmtw.com

The sudden cutoff of Medicaid reimbursements triggered an operational collapse within the agency. An employee speaking with a reporter in August described cutting final checks after the company was forced to lay off 125 home health aides and direct 165 vulnerable patients to seek care elsewhere because the business could no longer function without state funds. At the time, the company’s legal counsel did not respond to requests for comment.

Federal officials emphasized the broader economic and civic harm tied to the case. Healthcare fraud, in all its forms, costs all of us, and today’s arrests should make it clear that if — as alleged in the indictment returned last week — you steal from our healthcare system for your own financial gain, you too will be shut down and brought to justice, U.S. Attorney Andrew Benson stated during Tuesday’s news briefing.

BREAKING: Feds indict South Portland's Community Home Health Care, its owner and 5 workers in an alleged MaineCare fraud scheme. Prosecutors say they faked visit records to bill more than $600K for care one client never got. The company drew about $48M from MaineCare since 2019.… pic.twitter.com/HkJJU4ADZA

— https://x.com/SteveRob/status/2115106298291175487

Penalties and Next Steps in the Ongoing Investigation

The legal fallout for those indicted could be severe. A conviction on the charge of healthcare fraud conspiracy carries a maximum penalty of up to 10 years in prison, along with a fine of up to $250,000 or twice the total financial loss resulting from the fraudulent claims. Additional charges of making false statements and obstructing a healthcare investigation each carry maximum sentences of up to five years behind bars and separate $250,000 fines.

Beyond prison time and financial penalties, federal prosecutors are seeking the forfeiture of alleged fraud proceeds, which includes roughly $170,600 in cash and jewelry seized across locations in Biddeford and Augusta. The U.S. Attorney’s Office noted that the investigation remains active, with assistance provided by the Maine Attorney General’s Office and the state’s Medicaid Fraud Control Unit.