Federal authorities arrested a man on Thursday evening after he fled by jumping from a fourth-floor balcony in Minnesota during an FBI operation. The arrest was part of a sweeping health care fraud case involving 15 defendants accused in schemes targeting more than $90 million in Medicaid-related funds.
Authorities identified the man as Muhammad Omar, saying he was taken into custody about two hours after escaping during the execution of a federal search warrant.
Authorities had asked members of the public to contact the FBI with any information about Omar’s whereabouts during the hours he was on the run.
Prosecutors allege the schemes involved seven state-managed Medicaid programs and led to more than $90 million in taxpayer losses.
Among the alleged fraud services identified by federal investigators were autism services, home health care, child care services, housing stabilization services, and other Medicaid-funded provider services.
Under the Housing Stabilization Services program, authorities said eight defendants were charged in an alleged $15.7 million fraud scheme.
“Some defendants were residents of Pennsylvania who engaged in fraud tourism, traveling to Minnesota for lucrative opportunities to commit fraud,” the U.S. Department of Justice said.
Minnesota became the first state to offer Medicaid coverage for Housing Stabilization Services in July 2020, launching the program to help people with disabilities, seniors, and people with mental illness or substance use disorders secure and maintain housing.
The Minnesota Department of Human Services initially projected the program would cost about $2.6 million annually. However, claims exceeded $26 million in 2021 and rose to more than $104 million by 2024, according to federal officials.
The state shut down the Housing Stabilization Services program in October 2025 amid widespread fraud concerns.