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Man Accused of $1.3M in Minnesota Medicaid Fraud Surrenders to Feds
Prosecutors say he submitted $1.4 million in false housing claims and bought $150,000 in cryptocurrency with the proceeds.
On Thursday, Kaamil Omar Sallah was arrested at Minneapolis-St. Paul International Airport after returning to Minnesota. He made his first court appearance Friday before U.S. Magistrate Judge Shannon G. Elkins, facing four wire fraud charges related to his business, Forest Lake-based SafeLodgings, Inc.
Federal prosecutors allege Sallah defrauded the now-shuttered Minnesota Housing Stabilization Services program between 2023 and 2025 by submitting inflated bills. After registering his business in March 2023, he is accused of making false claims totaling $1.4 million, receiving $1.3 million from the state.
When Minnesota Housing Stabilization Services launched in 2020, it was projected to cost $2.6 million annually. By 2024, the program had around 21,000 participants and more than 1,800 providers, paying out more than $105 million yearly.
Officials have deemed 14 state human services programs to be at high risk for fraud. Integrated Community Services paid out $170 million in one year by 2024, prompting scrutiny across multiple DHS-administered programs for alleged misconduct.
This case represents one part of hundreds of millions in alleged state welfare fraud. Federal prosecutors say a scheme centered around the nonprofit Feeding Our Future defrauded the state government of $250 million in federal funds from a pandemic-era meal program.