Federal officials announced charges Thursday against 15 people accused of orchestrating massive Medicaid fraud schemes in Minnesota, describing the investigation as one of the largest healthcare fraud crackdowns the state has ever seen. Officials did not publicly identify all defendants or detail every charge during the announcement, though they said one suspect, Muhammad Omar, remains at large.
Authorities noted the pace and scale of the investigation as “unprecedented,” with the DOJ stating it recently created a national fraud enforcement division that has already launched hundreds of fraud-related actions nationwide since April. Acting Attorney General Todd Blanche said the Minnesota investigation is only the beginning, warning that additional enforcement actions are expected across the country.
At a news conference in downtown Minneapolis, U.S. Health and Human Services Secretary Robert F. Kennedy Jr. joined federal prosecutors and law enforcement leaders to reveal allegations involving roughly $90 million in taxpayer losses across seven state-run Medicaid programs. The programs were intended to support vulnerable groups, including children with autism, people with disabilities, homeless residents and low-income families. Kennedy said officials are determined to “protect vulnerable children and restore integrity to the American health care system.”
According to prosecutors, the defendants repeatedly billed the government for services that either were never delivered or were exaggerated, then used the proceeds to fund luxury lifestyles that included expensive homes, jewelry and high-end vehicles. Assistant Attorney General Colin McDonald said disabled and vulnerable individuals were essentially exploited for profit, with suspects allegedly treating public assistance programs “as their personal piggy bank.”
One case involved a Medicaid program designed to help disabled adults live independently; prosecutors said one recipient who was supposed to receive constant care instead received no assistance and later died. Another investigation centered on Minnesota’s autism services program. Authorities allege two suspects paid kickbacks to families to bring children in for autism diagnoses regardless of medical necessity, then billed Medicaid for treatment services that were never provided. McDonald said spending tied to the autism program surged from about $600,000 several years ago to nearly $400 million today, which investigators believe was fueled heavily by fraud. Kennedy called that case “the largest autism fraud bust in American history.”
Federal officials also highlighted concerns over Minnesota’s housing stabilization program, originally created to help homeless residents secure long-term housing. Prosecutors said the program’s costs exploded from an estimated $2.5 million annually in 2020 to more than $104 million by 2024. McDonald claimed one related program eventually shut down after funds were depleted.
The announcement came the same day a federal judge sentenced Aimee Bock to more than 41 years in prison for her role in the massive ‘Feeding Our Future’ pandemic fraud scheme, which prosecutors said diverted hundreds of millions of dollars intended to feed children during the COVID-19 pandemic.
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