Full Breakdown
Minnesota Autism Medicaid Fraud: $21 Million Theft by Two Providers
5/28/2026, 1:31:18 PM
Indictment and Alleged Scheme
Federal prosecutors indicted Minnesota residents Shamso Ahmed Hassan, 55, and Hanaan Mursal Yusuf, 25, for a Medicaid fraud scheme targeting the Early Intensive Developmental and Behavioral Intervention (EIDBI) program. They allegedly filed $46.6 million in false autism-service claims, received about $21 million, laundered the proceeds, and paid parents $300-$1,500 kickbacks to enroll children.
Program Context and Accused Providers
The EIDBI program reimburses Medicaid for intensive autism therapies. Hassan, a shareholder and lead biller, and Yusuf, a former Smart Therapy Center employee, operated Smart Therapy Center LLC and Star Autism Center LLC. Both are U.S. citizens; Hassan was naturalized. Their scheme unfolded from May 2020 through December 2024, overlapping a DOJ sweep of 15 Minnesota Medicaid fraud cases totaling roughly $90 million.
Chronology of Key Events
- May 2020 – Fraudulent billing begins.
- Dec 2024 – FBI raids the two autism centers.
- May 21 2026 – HSI arrests Hassan and Yusuf.
- May 27 2026 – DHS releases statement.
- June 2026 – Both appear in federal court; Hassan pleads not guilty.
Implications for Medicaid and Vulnerable Children
The alleged theft diverted Medicaid funds from children with autism, undermining program integrity and prompting calls for stricter oversight of provider enrollment and claim verification.
Government Statements
Acting Assistant Secretary Lauren Bis (DHS) said the defendants “stole more than $21 million from the American taxpayer” and pledged to end such fraud. HHS Secretary Robert F. Kennedy Jr. called the arrests the “largest autism fraud bust in American history.” Assistant Attorney General Colin McDonald (National Fraud Enforcement Division) described the charges as “unprecedented” and highlighted the DOJ’s expanded Midwest strike force.
Defense Response
Hassan entered a not-guilty plea; defense attorney Peter Wold called the allegations “hilarious” and described his client as an “honest, hardworking individual.”
Discrepancies in Reported Figures
Sources report differing reimbursement totals—$21.1 million versus $21.6 million—and varying fraud counts (eight overall versus two for Hassan and five for Yusuf). The indictment cites $46.6 million in claims, while some reports reference $21 million stolen.
Direct Statements
- “These Minnesota residents have been accused of stealing more than $21 million from the American taxpayer.” — Lauren Bis, Acting Assistant Secretary, DHS
- “Today's arrests represent the largest autism fraud bust in American history. This was not a paperwork error. It was not a technical violation. This was organized theft that exploited the most vulnerable children in America.” — Robert F. Kennedy Jr., HHS Secretary
- “Every fraudulent autism diagnosis steals time, care and resources from the children for whom this program was designed and who desperately need this care.” — Robert F. Kennedy Jr., HHS Secretary
- “The speed at which the alleged fraudsters were charged is ‘unprecedented.’” — Colin McDonald, Assistant Attorney General, National Fraud Enforcement Division
- “Sharmaine is an honest, hardworking individual.” — Peter Wold, Defense Attorney
Future Proceedings
Both defendants remain in federal custody while the case proceeds. The DOJ seeks restitution of the $21 million recovered and will continue its Midwest fraud strike force investigations into Medicaid schemes.
