Federal law enforcement agents launched a manhunt on Thursday morning in Minneapolis for a suspect who escaped arrest by jumping from a fourth-floor balcony.
The escape occurred during a multi-agency operation targeting a massive $90 million state program fraud scheme.
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The suspect, Muhammad Omar, is one of 15 defendants indicted by a federal grand jury for systematically exploiting state-managed initiatives.
These programs include Minnesota's Housing Stabilization program, the autism program, Integrated Community Support, and the Individualized Home Supports program.
Federal prosecutors stated that Omar collaborated with Ibrahim Bashir Abdi to establish North Home Health Care and independently operated South Home Health Care.
They falsified and inflated service hours to pocket $3.2 million and $480,000 respectively, while diverting funds overseas to purchase property in Kenya.
Authorities Urge Public to Help
Assistant Attorney General for the National Fraud Enforcement Division Colin McDonald detailed the flight of the suspect.
He urged the public to provide information regarding Omar's whereabouts to federal investigators.
"I would encourage the public to help turn this man in to face justice for the fraud that he has perpetrated," McDonald said.
"And now, to face the additional charges for seeking to flee from law enforcement and seeking to obstruct justice by virtue of his conduct today."
McDonald noted during the live news conference that the state's Housing Stabilization program ballooned from an initial budget of $2.5 million to $104 million by 2024.
This led to the termination of the initiative last year.
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Federal health officials expressed sharp criticism over the rapid expansion and lack of oversight regarding the budgets of the state-managed programs during the pandemic.
"This was the cost of the early intervention development program in 2020. It was $38.1 million," explained Secretary of Health and Human Services Robert F.
Kennedy, Jr.
"Instead, this year it hit $442 million. ...
[That's] the magnitude of the fraud and the damage that we're talking about today."
Federal oversight agencies intervened after the exponential spending increases threatened the long-term viability of the state-managed public assistance initiatives.
"It got so out of hand, that there was panic setting in," said Centers for Medicare and Medicaid Services Administrator Dr. Oz.
"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."
Dr. Oz also referenced recent testimony from former state employee Faye Bernstein, who stated at a Senate hearing that employees feared accusations of racism if they pursued fraud complaints.
The FBI requests anyone with information on Omar's location to contact investigators at 1-800-CALL-FBI or submit a tip online at tips.
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