Full Breakdown
Minnesota Medicaid Fraud Scheme Defrauds $21 Million from Autism Services
5/29/2026, 4:42:27 AM
Fraud Scheme Uncovered
On May 21, 2026, agents arrested Shamso Ahmed Hassan (55) and Hanaan Mursal Yusuf (25), accusing them of filing false claims to Minnesota’s Early Intensive Development and Behavioral Intervention Program (EIDBI). They used Smart Therapy Center LLC and Star Autism Center LLC to obtain $21.1-$21.2 million and paid monthly kickbacks of $300-$1,500 to parents of Medicaid-eligible children.
Background, Key Figures, and Data
EIDBI, run by the Minnesota Department of Human Services, funds intensive therapy for children with autism. State spending grew from $600,000 in 2018 to over $400 million by 2025, expanding Medicaid funding. Co-conspirators Asha Farhan Hassan and Abdinajib Hassan Yussuf previously pleaded in related cases. Prosecutors detail $21.1 million in false claims, $300-$1,500 monthly kickbacks per child, and inflated meal reports—claims of 300 children receiving daily meals were later overstated to 1,200 meals per day, generating $465,000 in false reimbursements.
Timeline
May 2020 – Fraudulent billing begins; Jan 1 2024 – Yusuf upgraded to Level I provider; Dec 2024 – Scheme ends; May 21 2026 – Arrests; May 28 2026 – Indictments and DHS statements.
Official Responses and Criticism
The Department of Homeland Security called the conduct a “false and fraudulent” Medicaid scheme lasting four years. Acting Assistant Secretary Lauren Bis said ICE is “zeroing in on the rampant fraud in Minnesota” and pledged to end defrauding. The Department of Justice noted the rapid growth of EIDBI spending and urged tighter oversight. Minnesota regulators revoked the two companies’ licenses in early 2026. Autism advocacy groups say the case reveals oversight gaps and demand mandatory service verification, stricter licensing, and real-time claim monitoring.
Conflicting Reports & Gaps
Sources list the stolen amount as $21.1 million, $21.2 million, or “approximately $21.1 million,” reflecting minor reporting differences. The indictment identifies co-conspirators only by description, while other reports name them as Asha Hassan and Abdinajib Yussuf. Exact numbers of children served and meals provided remain unverified.
Impact
The alleged diversion reduces funding for autism therapy, potentially delaying services for vulnerable children and eroding public confidence in Medicaid programs. Lawmakers may consider reforms to strengthen provider vetting and audit mechanisms.
What’s Next
Hassan and Yusuf remain in federal custody pending trial. Prosecutors anticipate additional money-laundering charges and possible forfeiture of assets, including property bought in Kenya. State officials are reviewing licensing rules for autism service providers.
Verbatim Quotes
- “ICE continues to zero in on the rampant fraud in Minnesota.” — Lauren Bis, Acting Assistant Secretary, Department of Homeland Security
- “Both suspects will remain in federal custody pending judicial proceedings,” it stated.” — DHS press release
- “Through both companies, the defendants carried out a scheme to defraud a health care benefit program of approximately $21.1 million by submitting false and fraudulent claims to Medicaid. This scheme took place over the course of more than four years, from May of 2020 to December of 2024,” — DHS press release
- “This scheme took place over the course of more than four years, from May of 2020 to December of 2024,” the press release stated.” — DHS press release
