Alleged Medicaid Fraudster who initially fled country, released from federal custody
Medicaid fraud suspect released on GPS monitoring
Kaamil Omar Sallah pleaded not guilty to four counts of wire fraud in a federal case involving Minnesota's Housing Stabilization Services program. Prosecutors allege Sallah and his coconspirators fraudulently claimed about $1.4 million in program funds through fake and inflated billing.
MINNEAPOLIS (FOX 9) - A Twin Cities man accused of stealing nearly $1.3 million from a Medicaid program meant to help people with disabilities find housing was released from federal custody on GPS monitoring and home confinement after pleading not guilty in the case.
Kaamil Omar Sallah appeared before U.S. Magistrate Judge Jon Huseby in U.S. District Court in Minneapolis for arraignment and a detention hearing on Tuesday, just days after returning to Minnesota and self-surrendering to federal authorities.
The charges
What we know:
According to a federal indictment, Sallah owned and operated a company called SafeLodgings, Inc., which he enrolled as a provider in Minnesota's Housing Stabilization Services (HSS) Program — a Medicaid-funded program designed to help people with disabilities and addictions find and maintain housing.
HSS has since been shut down entirely because of rampant fraud in the program.
Rather than provide housing services to vulnerable individuals, prosecutors allege Sallah and his coconspirators submitted fake and inflated bills to fraudulently claim approximately $1.4 million in program funds, receiving nearly $1.3 million of that amount between 2023-2025. In 2024 alone, Sallah claimed to have personally provided more than 3,600 billable service hours, according to the indictment.
Fled the country before his indictment
Dig deeper:
Sallah was indicted by a grand jury on four counts of wire fraud, but he fled the country on a flight to Amsterdam just weeks before the charges were filed against him.
He was arrested at Minneapolis-St. Paul International Airport on the evening of Sept. 10, approximately nine months after taking off. His return was coordinated by his attorneys in the Federal Defenders Office after Sallah reported that he wanted to self-surrender and voluntarily return to Minnesota.
"I commend the work of our law enforcement partners in coordinating the safe transfer of the defendant back to Minnesota. Sallah will now face justice for his role in defrauding Minnesotans and the American people," U.S. Attorney Daniel Rosen said in a statement last week.
Released on GPS monitoring and home confinement
Local perspective:
Prosecutors did not pursue detention at Tuesday’s hearing with both sides agreeing to strict release conditions including around-the-clock GPS monitoring and home confinement.
Sallah is only allowed to leave his residence for work, education, medical appointments, and court appearances. He was ordered to surrender his passport, visas, and any other travel documents.
What's next:
He pleaded not guilty to all the charges against him. The case now proceeds towards a potential trial. Sallah’s next court appearance has not yet been scheduled.