DOJ charges 15 in 'unprecedented' $90M Minnesota Medicaid fraud
The Department of Justice unsealed a federal grand jury indictment on Thursday, May 21, 2026, charging 15 people with scheming to steal more than $90 million from Minnesota Medicaid programs.[1]
The indictment names fugitive Muhammad Omar, who faces one count of conspiracy to commit health care fraud and four counts of health care fraud, and co-defendant Ibrahim Bashir Abdi.[1] Prosecutors say North Home Health Care billed about $3.2 million and South Home Health Care billed about $480,000 for patients who were hospitalized or deceased.[1] Federal officials said some alleged fraud proceeds were sent overseas and used to buy property in Kenya.[1] Federal health officials also said Minnesota's Medicaid programs "got out of control." FOX 9 They pointed to budget growth in the Early Intervention Development Program, from $38.1 million in 2020 to $442 million, and in Housing Stabilization, from $2.5 million to $104 million.[1]
The indictment says the alleged fraud targeted seven Minnesota Medicaid programs, including Autism Services, Integrated Community Support, and Individualized Home Supports.[1] Minnesota Reformer reported federal officials described the case as an "unprecedented" statewide scheme and provided additional narrative on how billing and enrollment flowed across waiver and home- and community-based services.[2]
Alpha News independently confirmed the Department of Justice action and noted its reporting added no new defendants, dollar figures, program names, or procedural developments beyond the indictment.[3] Prosecutors' filings and media reports say one defendant remains at large and law enforcement was searching for him.[1]
Show source details & analysis (4 sources)
📌 Key Facts
- A federal grand jury indictment filed on Thursday, May 21, 2026 charges 15 people with fraud targeting more than $90 million across seven Minnesota Medicaid programs, including Autism Services, Integrated Community Support, and Individualized Home Supports (federal grand jury indictment).
- Fugitive Muhammad Omar is charged in the indictment with one count of conspiracy to commit health care fraud and four counts of health care fraud, and co‑defendant Ibrahim Bashir Abdi is also named in the case (Muhammad Omar).
- Prosecutors say the North Home Health Care and South Home Health Care schemes billed Medicaid for patients who were hospitalized or deceased, allegedly taking about $3.2 million via North Home plus $480,000 via South Home (North Home Health Care).
- Some of the alleged fraud proceeds were sent overseas and used to buy property in Kenya (Kenya).
- Federal health officials criticized Minnesota’s Medicaid programs as having 'got out of control,' citing budget growth examples such as the Early Intervention Development Program rising from $38.1 million in 2020 to $442 million and Housing Stabilization from $2.5 million to $104 million (Early Intervention Development Program).
- Minnesota Reformer reports federal officials described the case as an 'unprecedented' Medicaid fraud scheme and provides additional narrative detail on how the alleged fraud operated across waiver and home‑and community‑based services (Minnesota Reformer).
- Alpha News independently confirms the Department of Justice action charging 15 people in the alleged $90 million Minnesota Medicaid fraud scheme and notes its coverage adds no new defendants, dollar figures, program names, or procedural developments beyond existing reports (Alpha News).
📰 Source Timeline (4)
Follow how coverage of this story developed over time
- The Alpha News piece is another outlet confirming the same DOJ action charging 15 people in the alleged $90 million Minnesota Medicaid fraud scheme.
- Based on the damaged text provided, there is no clear sign of additional defendants, new dollar figures, new program names, or new procedural developments beyond what FOX 9 and Minnesota Reformer have already reported.
- The article appears to restate that federal prosecutors and health officials describe the case as unprecedented and tied to Minnesota Medicaid waiver and home- and community-based services, consistent with existing coverage.
- Minnesota Reformer reports federal officials described the case as an 'unprecedented' Medicaid fraud scheme in Minnesota, emphasizing its scale and novelty.
- The article provides additional breakdown and narrative detail on how the alleged fraud operated across specific waiver and home‑ and community‑based service programs beyond the bullet‑point list carried by TV coverage.
- Reformer adds more context on Minnesota DHS oversight weaknesses and political/administrative reactions, including critical quotes about how state Medicaid programs 'got out of control' and how this fits into a broader pattern of fraud concerns.
- Confirms that a federal grand jury indictment charges 15 people with fraud targeting more than $90 million across seven specific Minnesota Medicaid programs, including Autism Services, Integrated Community Support, and Individualized Home Supports.
- Details the specific counts against fugitive Muhammad Omar (one count of conspiracy to commit health care fraud and four counts of health care fraud) and co-defendant Ibrahim Bashir Abdi.
- Explains the mechanics of the North Home Health Care and South Home Health Care schemes, including billing for patients who were hospitalized or dead and the total alleged take: $3.2 million via North Home plus $480,000 via South Home.
- States that some of the alleged fraud proceeds were sent overseas to buy property in Kenya.
- Provides on‑the‑record criticism from federal health officials (Sec. Kennedy and CMS Administrator Dr. Oz) that Minnesota’s Medicaid programs "got out of control," with concrete budget growth figures for the Early Intervention Development Program ($38.1M in 2020 to $442M) and Housing Stabilization ($2.5M to $104M).