15 Indicted in $90 Million Minnesota Medicaid Fraud Case as Acting AG Defends Fund for Trump Allies in Washington
Contributing writer Clint Combs reports on the federal indictments of 15 people accused of defrauding Minnesota's Medicaid program of $90 million, the presence of RFK Jr. and Dr. Oz at the Minneapolis press conference, the absence of acting Attorney General Todd Blanche, and the story of stroke survivor Aaron Johnson who has spent years fighting to receive benefits lost in Medicaid fraud fallout.
Federal prosecutors announced indictments May 21 against 15 people accused of defrauding Minnesota’s Medicaid program of $90 million, but the nation’s top law enforcement officer was absent from the Minneapolis press conference where the charges were unveiled.
Acting U.S. Attorney General Todd Blanche did not attend the event, instead appearing in Washington to defend a $1.776 billion fund that would compensate claims from allies of President Donald Trump, including participants in the Jan. 6, 2021, Capitol riot. Days before the press conference, the Justice Department released a memo stating the IRS is “forever barred” from investigating past tax returns of Trump and his family.
U.S. Department of Health and Human Services Secretary Robert F. Kennedy Jr. and Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz joined DOJ officials at the Minneapolis event, where they alleged defendants billed for services never provided, exploited vulnerable children and adults, and used stolen funds to purchase luxury vehicles and real estate.
“My message is this: eat, drink and be merry today, because your days of frolicking and freedom are numbered,” said Colin McDonald, assistant attorney general overseeing the Justice Department’s Fraud and Enforcement Division.
Court filings describe what prosecutors characterize as a multi-year Medicaid fraud operation. In one case, defendants Muhammad Abdulqadir Omar and Ibrahim Bashir Abdi allegedly operated two home health care LLCs as fronts to submit fraudulent claims and falsified case notes, bilking $3.8 million from the state Department of Human Services. Prosecutors allege the two used the money to invest a combined $170,000 in Kenyan real estate and purchase a $60,000 Mercedes-Benz.
Oz referenced a 32-year-old defendant, displaying a blurry still photo of Omar, who allegedly jumped from a fourth-floor balcony before being arrested later that night. “Those people need our help because of that man,” Oz said. “This gentleman, this picture, is one of the reasons that the housing stabilization program in this fine state is shut down.”
DOJ officials also announced that the Health Care Fraud Strike Force will add 11 new prosecutors nationwide to combat growing Medicaid fraud. The expansion comes amid a wave of departures from the U.S. Attorney’s Office in Minnesota, with prosecutors resigning in protest over the DOJ’s refusal to investigate federal agent Jonathan Ross, who shot and killed Renee Good during an immigration enforcement operation earlier this year.
While federal officials highlighted the fraud cases, a victim of the fraud’s ripple effects raised pointed questions at the press conference. Aaron Johnson, an independent photojournalist, suffered a stroke six years ago. A COVID-19 diagnosis combined with an autoimmune disease left him paralyzed from the neck down. He said years of Medicaid and housing assistance benefits were lost in the fallout from widespread fraud.
“I was approved for Housing Stability Services in December 2023, which came after a four-year fight to get my disability benefits,” Johnson told the Spokesman-Recorder. “But between December 2023 and right now in May 2026, I just got my first assistance payment in the right amount.”
Johnson’s application for Group Residential Housing, a program that allows renters with disabilities to cap rent at 30% of income, was finally approved in May.
At the press conference, Johnson pressed McDonald directly. “I’m a victim of HSS fraud. I hear all these plans to prevent it… is there any course of action? Is there a plan to compensate victims like myself for damages?” he asked.
McDonald offered few specifics. “The president issued an executive order that relates to the establishment of a fund for victims of fraud. President Trump announced that around 60 days ago,” he said.
Minnesota officials pushed back on the White House framing, defending the state’s existing anti-fraud efforts.
“The investigators and prosecutors in Attorney General Ellison’s Medicaid Fraud Control Unit regularly work alongside federal law enforcement to go after those who defraud Medicaid,” said John Stiles, chief of staff to Attorney General Keith Ellison. “The federal law enforcement agents based in Minnesota who work directly with Attorney General Ellison’s Medicaid Fraud Control Unit have never once expressed dissatisfaction with the work of the MFCU, which regularly ranks as one of the most effective Medicaid fraud units in the nation.”
DHS Inspector General James Clark also responded on social media. “My office continues to use our administrative power to shut off money to these and other Medicaid providers as soon as we uncover credible allegations of fraud, which we’ve done more than 600 times over the past 18 months,” Clark wrote. “In fact, we stopped payments to some of the businesses connected to today’s charges more than a year ago.”
Clint Combs welcomes reader responses at combs0284@gmail.com.