The U.S. Department of Justice (DOJ) has charged 15 individuals in connection with a $90 million fraud scheme targeting Minnesota Medicaid and other taxpayer-funded social service programs. The case, described as the largest autism fraud scheme ever uncovered by the DOJ, involves allegations of fake diagnoses, kickback schemes, fraudulent billing, and nonexistent care for vulnerable children and disabled adults.
Immediate Action & Core Facts
Federal prosecutors allege that the defendants exploited seven Minnesota-managed Medicaid programs. Two autism clinics, Smart Therapy in Minneapolis and Star Autism in St. Cloud, are at the center of the case. Prosecutors claim that defendants Shamso Ahmed Hassan and Hanaan Mursal Yusuf fraudulently billed Medicaid over $46 million for services that were either medically unnecessary or never provided. The clinics allegedly received roughly $21 million in Medicaid reimbursements, which were used to purchase luxury items and transfer funds overseas.
Deeper Dive & Context
The DOJ announced the charges during a press conference on May 21, with Assistant Attorney General Colin McDonald stating, "These defendants treated Minnesota-run programs as their personal piggy bank." The scheme allegedly involved paying parents between $300 and $1,500 per child to enroll them in autism treatment programs before billing Medicaid for services using providers who either never worked at the clinics or were no longer employed there.
Federal officials also announced separate fraud charges involving Minnesota housing and disability programs. In one case, prosecutors alleged that a disabled man who was supposed to receive 24-hour care was found dead after allegedly receiving no actual services while fraudulent Medicaid claims continued to be submitted in his name.
The DOJ emphasized that this is the beginning of their work in Minnesota, suggesting further investigations and potential charges may follow.