Auburn Business Owner Pleads Guilty to Federal Tax Fraud Following Comprehensive MaineCare Billing Investigation

Rakiya Mohamed, owner of Reliable Language Resources, pleads guilty to false tax returns linked to a MaineCare fraud probe. Read the full details here.

By: AXL Media

Published: Mar 6, 2026, 5:22 AM EST

Source: The information in this article was sourced from WABI-TV

Guilty Plea in Federal Tax Fraud Case

A high-stakes fraud investigation into Maine’s language interpretation sector reached a significant milestone on Thursday as a local business owner admitted to federal financial crimes. According to prosecutors in Portland, 30-year-old Rakiya Mohamed of Auburn entered a guilty plea in federal court, acknowledging that she willfully filed false federal tax returns. Mohamed, who operated the firm Reliable Language Resources, is the latest individual to face consequences in an ongoing crackdown on systemic billing irregularities within state-funded programs.

The MaineCare Exploitation Scheme

The tax charges against Mohamed are deeply intertwined with a larger, more complex scheme targeting the state’s healthcare infrastructure. According to federal authorities, the investigation revealed that multiple interpretation companies participated in a coordinated effort to bill MaineCare the state’s Medicaid program for translation and interpretation services that never actually occurred. While the primary charges in this specific hearing focused on tax evasion, the underlying fraud investigation continues to examine how several entities systematically drained public funds through phantom service claims.

Falsification of Financial Records and IRS Deception

In her admission to the court, Mohamed detailed the methods used to conceal the proceeds of the billing scheme from federal regulators. According to the prosecution’s evidence, she reported fictitious income and inflated expenses to the Internal Revenue Service (IRS). Furthermore, Mohamed acknowledged providing falsified business records to federal agents in an attempt to validate the inaccuracies on her tax filings. This deliberate manipulation of financial data was designed to obscure the true nature of her business operations and the origins of her company's revenue.