Two Minnesota Residents Arrested Over Alleged $21 Million Medicaid Fraud Scheme

United States Department of Homeland Security has announced the arrest of two Minnesota residents accused of orchestrating a massive healthcare fraud scheme that allegedly stole more than $21 million from American taxpayers through fraudulent Medicaid claims.

According to authorities, U.S. Immigration and Customs Enforcement Homeland Security Investigations officers in St. Paul arrested Shamso Ahmed Hassan and Hanaan Mursal Yusuf on charges including conspiracy to commit healthcare fraud, eight counts of healthcare fraud, and two counts of money laundering.

Federal investigators alleged that Hassan was a beneficial owner of Smart Therapy Center LLC and Star Autism Center LLC, companies that were enrolled as service providers under Minnesota’s Early Intensive Developmental and Behavioral Intervention program. Authorities said she also worked as an employee and lead biller for Smart Therapy Center, where she was responsible for submitting Medicaid claims.

According to court filings, the two defendants allegedly carried out a coordinated scheme to defraud Medicaid by submitting false and fraudulent reimbursement claims over a period spanning more than four years, from May 2020 through December 2024.

Investigators claimed the fraudulent activity generated approximately $21.1 million in improper payments from government healthcare programs funded by taxpayers.

Reacting to the arrests, Acting Assistant Secretary Lauren Bis said the case reflects ongoing efforts by federal authorities to crack down on large-scale financial fraud targeting public assistance programs.

She stated that the alleged scheme began during the COVID-19 pandemic and continued for several years before investigators intervened. According to federal officials, authorities are intensifying efforts to uncover and prosecute healthcare fraud operations across Minnesota.

The suspects are both United States citizens, with officials confirming that Hassan became a naturalized citizen after immigrating to the country.

The investigation is being led by the Federal Bureau of Investigation with assistance from Homeland Security Investigations. Both women are expected to remain in federal custody pending further judicial proceedings as prosecutors continue building the case.

The arrests have once again drawn attention to growing concerns surrounding Medicaid fraud in the Minnesota healthcare system, particularly following increased government spending during and after the COVID-19 pandemic. Federal authorities say the case underscores the importance of stronger oversight and enforcement measures aimed at protecting public funds from fraudulent activities.