$90m Medicaid fraud suspect arrested by FBI

FBI agents arrested a suspect linked to an alleged $90 million Medicaid fraud scheme in Minnesota. [Courtesy]

One of the suspects linked to a Minnesota healthcare fraud scheme involving more than $90 million (Sh11.7 billion) has been arrested after months on the run.

Muhammad Abdulqadir Omar was apprehended on May 21 following a failed attempt to evade arrest. Police raided an apartment in Minnesota where the Somali national had been living.

Omar and his business partner, Ibrahim Bashir Abdi, are accused of wiring millions of dollars to Kenya and acquiring property in Nairobi using proceeds from the alleged fraud.

According to the US Department of Justice, Omar and Abdi co-owned North Home Health Care LLC and South Home Health Care LLC, companies registered under Minnesota’s Housing Stabilisation Services (HSS) programme.

Prosecutors allege the firms fraudulently billed the programme for millions of dollars by claiming payment for services that were never provided, exaggerated or allegedly rendered to clients who were hospitalised or deceased.

When FBI agents arrived at Omar’s apartment to execute search and arrest warrants, the 32-year-old allegedly jumped from a fourth-floor balcony, breaking his leg before fleeing.

He was traced and arrested hours later before being presented in court, where prosecutors argued that he posed a significant flight risk.

“He went to extremes to flee,” prosecutor Matthew Belz told the court during a detention hearing.

However, Omar’s lawyer, Tyler Bliss, argued that his client had not deliberately attempted to evade arrest and described the incident as a moment of panic.

During the hearing, prosecutors presented evidence alleging that Omar invested fraud proceeds in residential properties in Nairobi.

Magistrate Judge Elsa Bullard ruled that she could not be satisfied Omar would remain in the United States if released.

Court documents show that after jumping from the balcony, Omar drove to a cousin’s home in Blaine, Minnesota.

Two of his relatives, Anwar Adow and Asad Adow, have already pleaded guilty to wire fraud. Prosecutors allege that Asad used some of the proceeds to invest in real estate in Kenya.

According to court filings, Omar transferred $26,356 (about Sh3 million) on February 5, 2025, to a Nairobi-based real estate agent to purchase an apartment at Blossom Ivy Residence in Kileleshwa. Three months later, on May 13, he allegedly wired a further $48,372 (about Sh6 million) towards the purchase of another apartment in the same area.

Investigators became suspicious after uncovering forged client signatures and questionable Medicaid claims submitted by North Home Health Care LLC and South Home Health Care LLC.

The companies purportedly offered housing support services to vulnerable Minnesotans.

Court records have also highlighted how proceeds from alleged fraud schemes in the United States have been channelled into property investments in Nairobi neighbourhoods, including Kileleshwa, Lavington, Kilimani, Eastleigh and South C. 

Omar and Abdi are among 15 individuals charged in connection with a more than US$90 million (Sh11.7 billion) fraud scheme targeting Minnesota’s Medicaid programme, which provides low-cost or subsidised healthcare coverage to low-income residents, older persons and people living with disabilities.

The alleged fraud affected seven Medicaid programmes, including Housing Stabilisation Services, autism support initiatives, Integrated Community Support and Minnesota’s Individualised Home Supports programme.

Omar’s arrest came days after the Directorate of Criminal Investigations (DCI) Director Mohamed Amin hosted FBI Deputy Director Andrew Bailey during a high-level visit to the DCI headquarters at Mazingira Complex in Nairobi.

The May 10, 2026, visit was aimed at strengthening cooperation between the DCI and the FBI, nearly two years after a visit by former FBI Director Christopher Wray.

Officials from both agencies discussed collaboration in combating terrorism, cybercrime, transnational organised crime, financial fraud, human trafficking, narcotics trafficking, money laundering and crimes against children.

The discussions also focused on digital forensics, artificial intelligence, cryptocurrency tracking, intelligence sharing and other technologies used to combat increasingly sophisticated criminal networks operating across borders.

Amin praised the partnership, noting that it had delivered significant results through joint investigations, intelligence sharing, extraditions and specialised training programmes.

Bailey, meanwhile, commended Kenya’s efforts to combat corruption, saying strong anti-corruption measures are critical to attracting investment and supporting economic growth.