Former DHS deputy assistant secretary Jonathan Fahey has highlighted a significant Medicaid fraud bust in Minnesota involving $90 million. According to Fahey, this case is only the start, as more details could emerge through statements from cooperating defendants.
Health and Human Services Secretary Robert F. Kennedy Jr. spoke about the charges against two individuals involved in what is labeled the largest autism fraud case in U.S. history. The U.S. Department of Justice (DOJ) indicted Shamso Ahmed Hassan, 55, and Hanaan Mursal Yusuf, 25, for orchestrating a $46.6 million scheme to cheat Minnesota’s Medicaid Early Intensive Developmental and Behavioral Intervention (EIDBI) Program.
As part of the DOJ’s broader crackdown, 15 alleged fraudsters were charged with schemes amounting to over $90 million in taxpayer losses. “Today’s arrests mark the largest autism fraud operation in America,” Kennedy Jr. announced, underscoring the crime’s impact on vulnerable children and the misuse of funds intended for legitimate autism care.
Hassan, a stakeholder in two autism treatment centers, Smart Therapy Center and Star Autism Center, allegedly failed to disclose her ownership to Minnesota’s Department of Human Services; meanwhile, Yusuf, who was employed at the Smart Therapy Center, managed the claims for Medicaid reimbursement.
The indictment also revealed that these centers enticed families with kickbacks to enroll their children under false pretenses, billing Medicaid for unrendered or non-reimbursable services. Of the $46.6 million fraudulently claimed, $21.6 million was paid by Medicaid. The DOJ is now seeking to recover this amount.
Assistant Attorney General Colin McDonald noted the illegal diversion of hundreds of thousands from the fraud’s proceeds for personal use, which included real estate purchases and fund transfers overseas, notably to Kenya.
The defendants face charges across multiple counts. Both were accused of conspiracy to commit healthcare fraud and money laundering. Yusuf received additional charges for healthcare fraud, while Hassan faced further counts.
“Fraudulent autism diagnoses deprive genuine patients of needed care and resources,” Kennedy Jr. remarked, recognizing the compounded difficulties families encounter in accessing support for autistic children.
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