A Minnesota man facing charges in a widespread Somali fraud scheme leaped off a fourth-floor balcony and fled in a luxury vehicle when authorities attempted to take him into custody, federal officials said.
Arrest Attempt and Escape
Federal authorities said they tried to arrest Muhammad Omar on Thursday morning for allegedly defrauding nearly $3.3 million from a state-run Medicaid program. However, Omar made his escape by leaping off a fourth-floor balcony and fleeing in a luxury Genesis sedan. He was later captured on video jumping over a concrete barrier and falling, before hobbling away past security cameras. At the time, Omar was seen wearing a white shirt and bright blue shorts, carrying his sandals in his hands. Law enforcement sources told KARE that he was arrested hours later at a home tied to a company he owns.
Charges and Allegations
Omar now faces one count of conspiracy to commit health care fraud and four counts of health care fraud. He may also face additional charges for his escape. Prosecutors claim he worked with another man, Ibrahim Bashir Abdi, to create North Home Health Care before Omar opened a second company by himself called South Home Health Care. Both businesses were registered with Minnesota's Housing Stabilization program, a Medicaid-funded program designed to help seniors and people with disabilities find and maintain homes.
Fraudulent Billing
Authorities say Omar and Abdi falsely inflated the number of service hours North Home Health Care provided. In one instance, they allegedly billed for 92 hours of service for a person who was already deceased. The fraud continued even after an internal compliance manager flagged the scheme but was ignored, according to an indictment obtained by KARE. In total, Omar and Abdi pocketed $3.2 million from false claims, while Omar received an additional $480,000 from fraudulent claims at South Home Health Care. The men allegedly sent some of their profits overseas to buy property in Kenya, and Omar also spent some of the money on a lease for a new Mercedes.
Broader Fraud Scheme
Omar and Abdi are among 15 defendants across Minnesota facing charges over alleged fraud schemes that targeted a whopping $90 million in taxpayer dollars. At a news conference announcing the charges, US Assistant Attorney General for National Fraud Enforcement Colin McDonald said the fraudsters 'systematically pilfered' seven Medicaid programs, using them 'as their personal piggy bank.' Secretary of Health and Human Services Robert F Kennedy Jr highlighted how the budgets for the programs exploded during the COVID pandemic. Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services, said the budgets of seven Minnesota state-run Medicaid programs 'got so out of hand that there was panic setting in.'
The Housing Stabilization program, in particular, started with a budget of $2.5 million but ended up at almost 50 times that amount—$104 million—by 2024, according to Fox 9. Minnesota state officials decided to terminate the program last year. 'It got so out of hand that there was panic setting in,' Dr. Oz added. 'It was at that point that we re-engaged the process and realized there were programs that had been created here with massive spending that had increased so rapidly that there's no way to save the program.'
Political Context
The Trump administration cracked down on fraud in Minnesota after independent journalist Nick Shirley highlighted the city's daycare centers in a bombshell video featuring several Somali-run operations, including the misspelled Quality 'Learing' Center. Last year, Trump said Somalis were 'completely taking over' Minnesota and accused the community of widespread fraud, prompting a massive immigration enforcement operation.
Other Defendants
Others indicted in the scandal include Fahima Mahamud, 50, the owner of the Quality 'Learing' Center. Prosecutors say she made fraudulent reimbursement claims to the federal government for food assistance in her role as CEO of the Future Leaders Early Learning Center. Mahamud allegedly submitted over 13,000 claims between October 2022 and December 2025, resulting in $4,629,929 in taxpayer-funded reimbursements from the Child Care Assistance Program administered by the Minnesota Department of Human Services. At times, she claimed to serve two meals a day to about 1,000 children, seven days a week, but prosecutors say those meal counts were false and inflated. She diverted much of the money for real property and her own benefit, according to court filings. In February, Mahamud was also charged with wire fraud in connection with the Feeding Our Future scandal, a $250 million Somali-linked fraud scheme that prompted Trump's federal crackdown on Minnesota. The mastermind behind that scheme, Aimee Bock, 45, was sentenced to more than 41 years in prison after being convicted of multiple counts of conspiracy, wire fraud, and bribery. In total, nearly 80 people have been charged in the Feeding Our Future scheme, which stole approximately $250 million in taxpayer dollars meant to feed hungry children, with the money instead used to fund lavish lifestyles.
