MINNEAPOLIS (Diya TV) — Federal authorities have charged two Minnesota women in a massive Medicaid fraud scheme tied to the state’s autism treatment program. Prosecutors say the women stole millions of taxpayer dollars by submitting false claims for services that never happened.
The case marks part of what investigators describe as the largest fraud crackdown involving Minnesota’s autism Medicaid program. Officials estimate the wider scheme caused losses exceeding $90 million. The U.S. Department of Homeland Security announced the arrests after U.S. Immigration and Customs Enforcement’s Homeland Security Investigations assisted in the case. Federal prosecutors charged Shamso Ahmed Hassan, 55, and Hanaan Mursal Yusuf, 25, with conspiracy to commit health care fraud, multiple counts of health care fraud, and money laundering.
Both women pleaded not guilty in federal court.
According to court documents, Hassan owned Smart Therapy Center LLC and Star Autism Center LLC. She also served as an employee and lead biller for Smart Therapy Center. Prosecutors said she handled Medicaid billing through Minnesota’s Early Intensive Developmental and Behavioral Intervention program, known as EIDBI. Authorities allege Hassan and Yusuf carried out the fraud scheme from May 2020 through December 2024. Investigators say the women submitted false Medicaid claims for autism treatment services that providers never delivered.
Prosecutors also accused the women of using unqualified workers to provide services billed to Medicaid. Investigators said the businesses claimed reimbursement for care that did not meet state requirements. Federal officials said the defendants submitted fraudulent Medicaid claims totaling more than $46 million. Medicaid allegedly paid out about $21.1 million during the scheme.
Investigators said the women used the stolen money to buy property and send large wire transfers to Kenya. Prosecutors also accused them of laundering the funds through various financial transactions. Court documents state the women offered families monthly kickbacks ranging from $300 to $1,500 to enroll children in the program. Authorities said the payments helped the defendants recruit participants for the fraud operation. Acting Assistant Secretary Lauren Bis criticized the alleged scheme in a statement released by DHS.
“These Minnesota residents have been accused of stealing more than $21 million from the American taxpayer,” Bis said. “Their Medicaid fraud scheme started during the COVID pandemic and lasted for four years.”
Bis also said ICE continues to investigate fraud cases across Minnesota. She added that federal authorities plan to pursue additional cases involving misuse of taxpayer funds. The Federal Bureau of Investigation leads the investigation with assistance from Homeland Security Investigations. Officials said both women will remain in federal custody while the judicial process continues. Federal prosecutors linked Hassan and Yusuf to a broader crackdown involving 15 defendants accused of exploiting Minnesota’s autism treatment program. Authorities described the investigation as one of the largest health care fraud cases in state history.
The EIDBI program helps children with autism and related conditions receive behavioral treatment and developmental support. Medicaid funds the program to ensure eligible families can access necessary care. Investigators say fraud schemes like this hurt vulnerable families and drain public resources meant for children with disabilities. Officials also warned that false claims can weaken trust in public health care programs.
Health care fraud remains a major focus for federal investigators across the United States. Authorities frequently target schemes involving Medicaid and Medicare because the programs distribute billions of taxpayer dollars each year. The COVID-19 pandemic created new opportunities for fraud as emergency funding and expanded services increased government spending. Federal agencies have launched several nationwide investigations since 2020 to recover stolen money and prosecute suspects.
