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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 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—a dramatic expansion that created vulnerability to fraud.
Officials have deemed 14 state human services programs to be at 'high risk.' Integrated Community Services, which assists people with disabilities, paid out $170 million in one year by 2024, exemplifying the broader scrutiny facing multiple DHS-administered programs.
Federal prosecutors say a scheme centered around the nonprofit Feeding Our Future defrauded the state government of $250 million in federal funds, representing the single largest known instance of fraud. The Sallah case exemplifies a broader pattern of vulnerability across Minnesota's welfare systems.