Federal agents arrested two U.S. citizens in Minnesota on charges of conspiring to defraud Medicaid of more than $21 million through a multi-year scheme involving false claims for autism-related services under the state’s Early Intensive Developmental and Behavioral Intervention (EIDBI) program.
Brooklyn Park residents Shamso Ahmed Hassan, 55 (pictured above, right), and Hanaan Mursal Yusuf, 25 (pictured above, left), were taken into custody on May 21 following an investigation by Homeland Security Investigations (HSI) St. Paul, the FBI, and federal prosecutors. They face one count of conspiracy to commit health care fraud, multiple counts of health care fraud, and money laundering charges.
Acting Assistant Secretary Lauren Bis said the duo “face charges of conspiracy to commit health care fraud, EIGHT counts of health care fraud, and TWO counts of money laundering. Their Medicaid fraud scheme started during the COVID pandemic and lasted for four years.”
According to court documents and a Department of Homeland Security statement, Hassan was a beneficial owner of Smart Therapy Center LLC and Star Autism Center LLC. She enrolled the companies as providers in Minnesota’s EIDBI program — which funds intensive behavioral intervention services for children with autism spectrum disorder — and served as the lead biller. Yusuf worked as a Level II provider and assisted in operations and claims submission.
From May 2020 through December 2024, prosecutors say the defendants submitted more than $46.6 million in false and fraudulent claims to Medicaid, resulting in approximately $21.1 million in improper payments. The scheme allegedly included billing for services never rendered, medically unnecessary services, and paying kickbacks to families to enroll children in the programs. Funds were used for personal expenses, including real estate purchases and overseas transfers, officials say.
This case is part of a larger federal crackdown in Minnesota that has resulted in charges against 15 defendants for schemes totaling over $90 million across multiple Medicaid programs — described by officials as the largest autism fraud prosecution in U.S. history.
Both women remain in federal custody pending further proceedings. Hassan is a naturalized U.S. citizen.
Nationwide, the HHS Office of Inspector General has conducted multiple audits of Medicaid-funded Applied Behavior Analysis (ABA) services for children with autism, uncovering hundreds of millions in improper or potentially improper payments.
So far, investigations uncovered suspicions payments to programs in:
– Indiana ($56.5 million)
– Wisconsin ($18.5 million)
– Maine ($45.6 million)
– Colorado (at least $77.8 million, with estimates up to $285 million in questionable claims)
In a meeting of the newly-convened White House anti-fraud task force Wednesday, Deputy Chief of Staff Stephen Miller said, “I believe based on what I’ve seen and what I’ve heard is that we could balance the federal budget if the only dollars that went out of the Treasury went to individuals who are properly, lawfully, correctly eligible to receive them.”
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Christina Botteri is the Executive Editor of The Tennessee Star and The Star News Network. Follow her on X at @christinakb.
