Charges Filed in Major Medicaid Fraud Case
Two women of Somali descent in Minnesota have been charged for allegedly embezzling over $21 million from state Medicaid funds designated for children with autism spectrum disorders. This information has been corroborated by the Department of Homeland Security.
On May 21st, the Department of Justice revealed the charges as part of a broader federal initiative targeting a Medicaid fraud scheme in Minnesota that could exceed $90 million.
According to the indictment, Shamso Ahmed Hassan, 55, and Hanan Mursal Yusuf, 25, residents of Brooklyn Park, operated the scheme via two facilities: Smart Therapy Center in Minneapolis and Star Autism Center in St. Cloud.
Hassan was a stakeholder in both facilities, though he allegedly kept this ownership hidden, following a request from the Minnesota Department of Human Services. Yusuf served as a Level II provider, responsible for submitting insurance claims.
Federal prosecutors claim that from May 2020 to December 2024, the two submitted claims to Minnesota’s Early Intensive Developmental and Behavioral Intervention program worth around $46.6 million, with about $21.1 to $21.2 million being paid out by Medicaid.
The prosecution argues that a significant number of the services billed, particularly family training sessions, were either not provided at all or were not medically necessary.
To inflate their numbers, the defendants reportedly issued illegal kickbacks to parents and provided cash incentives of $300 to $1,500 a month for enrolling their children, all of which was often concealed in company records.
Additionally, they are accused of fabricating autism diagnoses for children who didn’t require treatment in order to submit fraudulent claims. Prosecutors assert that the proceeds were used to purchase luxury items and launder money abroad, including to family members in Somalia.
Hassan made her initial court appearance in U.S. District Court in Minneapolis, entering a not-guilty plea to charges including health care fraud and conspiracy to commit money laundering. She has been released under several conditions, including surrendering her passport. Yusuf faces similar allegations.
This case is considered by federal authorities to be the largest prosecution related to autism treatment fraud in U.S. history. There has been renewed scrutiny of Minnesota’s EIDBI program, which has seen its annual spending soar from about $600,000 to over $400 million in recent years.
In light of various investigations revealing significant weaknesses, Minnesota officials have pledged to implement “increased oversight,” which includes provisional licenses, mandatory background checks, and unannounced visits to providers.
Next Steps in the Legal Process
Federal prosecutors will start sharing evidence accumulated over the years with the defense. This “Discovery” period will include:
- Billing records demonstrating the $21.1 million received from Minnesota Medicaid.
- Internal business documents obtained during FBI raids on both Smart Therapy Center and Star Autism Center.
- Evidence of alleged kickbacks and foreign wire transfers from the associated parent company.
Motion Hearings and Pretrial Activities
In the upcoming months, defense teams will analyze the provided evidence and may file pretrial motions, potentially challenging specific evidence or language in the indictment.
Plea Negotiations or Trial Scheduling
Prosecutors are likely to propose a structured timeline for the case as part of the wider federal initiative against Medicaid fraud in Minnesota. Defendants may also negotiate plea agreements with the DOJ, pleading guilty to lesser charges in return for reduced sentences.
If a plea deal is not reached, a federal judge will set a trial date for a jury to determine their guilt or innocence. Given the extensive financial evidence, it’s expected that a trial won’t occur until late 2026 or early 2027.
