Federal authorities in Minnesota have arrested a healthcare fraud suspect after he allegedly escaped an earlier FBI arrest attempt by jumping from a fourth-floor balcony, according to law enforcement officials.
Muhammad Omar is among 15 defendants charged in what the Department of Justice has described as a sweeping $90 million Medicaid fraud investigation involving multiple Minnesota healthcare and social assistance programs.
Prosecutors accuse Omar and several co-defendants of exploiting programs intended to support vulnerable residents, including individuals with disabilities, autism patients, and low-income families.
Minnesota fraud suspect arrested hours after dramatic balcony escape
Authorities said Omar initially evaded federal agents on Thursday, May 21, morning when investigators attempted to arrest him ahead of a major federal news conference announcing the charges.
Also Read: Man Leaps From 4th-Story Balcony to Escape FBI During $90M Minnesota Fraud Raid & Still Missing
FBI officials later confirmed he was taken into custody around 3 p.m. after an hours-long search.
Court filings accuse Omar of participating in a healthcare fraud scheme involving Minnesota’s Housing Stabilization Services (HSS) program, a Medicaid-funded initiative designed to help vulnerable residents secure and maintain stable housing.
According to the charging documents, Omar worked alongside Ibrahim Bashir Abdi to establish North Home Health Care and to operate South Home Health Care.
Both businesses were allegedly enrolled in Minnesota’s Housing Stabilization program.
Federal prosecutors allege the pair submitted fraudulent reimbursement claims by falsifying and inflating the number of services supposedly provided to Medicaid recipients.
Investigators claim some patients listed in the billing records were hospitalized at the time the services were allegedly provided, while others were already deceased.
Authorities allege Omar and Abdi fraudulently obtained approximately $3.2 million through North Home Health Care, while Omar allegedly secured an additional $480,000 through South Home Health Care.
Investigators further allege some proceeds from the scheme were transferred overseas and used to purchase property in Kenya.
Omar now faces one count of conspiracy to commit healthcare fraud and four counts of healthcare fraud.
The allegations against Omar are part of a broader federal crackdown announced Thursday by the Department of Justice under what officials called the “Minnesota Health Care Fraud Takedown.”
The DOJ said the operation resulted in criminal charges against 15 defendants accused of participating in schemes involving more than $90 million in intended losses tied to multiple Medicaid and child care assistance programs.
Federal officials described the investigation as involving the two largest Medicaid fraud cases ever charged in Minnesota, along with what prosecutors said were the first criminal prosecutions tied to fraud in several state healthcare support programs.
The investigation targeted seven Medicaid-related programs, including Minnesota’s Housing Stabilization Services program, the Early Intensive Developmental and Behavioral Intervention (EIDBI) autism program, Integrated Community Supports (ICS), and the Individualized Home Supports (IHS) program.
According to the DOJ, several of the alleged schemes involved billing for services never provided, exploiting vulnerable patients, concealing financial interests in housing arrangements, and using fraudulent claims to purchase luxury items and real estate.
The Justice Department said Minnesota’s Medicaid-related support programs saw explosive spending growth in recent years, particularly after the COVID-19 pandemic.
Federal officials noted that the Housing Stabilization Services program was initially projected to cost approximately $2.6 million annually, but claims ballooned to more than $104 million by 2024. Minnesota ultimately shut down the program in October 2025 amid mounting fraud concerns.
The autism-focused EIDBI program also experienced a dramatic increase in spending, rising from approximately $600,000 in claims in 2018 to more than $400 million by 2025, according to the DOJ.
Department of Justice speaks
Acting Attorney General Todd Blanche said the defendants allegedly “stole taxpayer dollars while providing substandard care for children and abandoning at least one Medicaid recipient as they passed away.”
Health and Human Services Secretary Robert F. Kennedy Jr. described the operation as “the largest autism fraud bust in American history,” accusing suspects of exploiting vulnerable children and diverting critical care resources away from families who needed support.
Also Read: FBI Reveals Number of Suspects Indicted in Minnesota Medicaid Fraud Crackdown
FBI Director Kash Patel also addressed the investigation, saying the bureau and its federal partners were focused on dismantling large-scale public fraud operations targeting taxpayer-funded programs.
“As alleged, the defendants in this case not only attempted to steal public healthcare funds paid for by hardworking American taxpayers — but stole critical resources from families who truly needed them,” Patel said.
The Justice Department simultaneously announced a major expansion of its healthcare fraud enforcement operations, including funding for 15 additional federal prosecutors dedicated specifically to Medicaid fraud investigations nationwide.
Officials said the new prosecutors will be deployed to areas experiencing major Medicaid fraud threats, including Minnesota, California, Texas, Florida, and New York.
The Department of Justice also confirmed the expansion of its Midwest Health Care Fraud Strike Force to include Minnesota following the latest investigation.
Authorities emphasized that all defendants are presumed innocent unless proven guilty in court.
