Federal prosecutors have charged four individuals in what they call the largest autism benefits fraud scheme ever prosecuted in the United States, alleging parents were paid kickbacks to falsely enroll healthy children in autism treatment programs that bilked Medicaid and Minnesota taxpayers out of $46 million over five years.

Kickbacks Disguised As Computer Payments

Parents from Minnesota’s Somali community received between $300 and $1,500 monthly for each child enrolled at Smart Therapy Center and Star Autism Center in the Minneapolis and St. Cloud areas, according to a new federal indictment. The defendants allegedly used the code word computer to refer to these illegal kickback payments. Prosecutors say the fraudsters wrote checks to employees and family members of the facilities, who then cashed them and delivered the money to participating parents each month.

The scheme exploited Minnesota’s Early Intensive Developmental and Behavioral Intervention program, which provides autism services for individuals under 21. Department of Justice officials revealed that EIDBI program spending exploded from just over $600,000 in 2018 to more than $400 million in 2025, raising questions about oversight failures that allowed fraud to flourish.

Clinic Owners Charged In Federal Court

Shamso Ahmed Hassan, 55, co-owner of both Smart Therapy and Star Autism, faces federal charges alongside Hanaan Mursal Yusuf, 25, a lead biller at Smart Therapy. Federal prosecutors allege the pair collected $21.2 million in fraudulent autism benefits between 2019 and 2024. Both Minnesota clinics lost their state licenses earlier this year. Two other defendants, Asha Farhan Hassan, 28, and Abdinajib Hassan Yussuf, 27, have already accepted plea deals and await sentencing for their roles in the fraud.

Prosecutors allege Yussuf purchased a $100,000 Freightliner semi-truck with stolen funds and wired $200,000 to Kenya. Asha Hassan allegedly sent hundreds of thousands of dollars overseas and bought real estate in Kenya using money from the scheme. The indictment reveals Hanaan Yusuf upgraded her provider status to Level I on January 1, 2024, allowing Smart Therapy to bill Medicaid at higher rates for her services.

Food Program Fraud Compounded The Theft

Beyond the autism benefits fraud, Hassan allegedly defrauded taxpayer-funded child nutrition programs starting in December 2020 by claiming Smart Therapy served 300 children breakfast and lunch seven days weekly. Federal prosecutors say hundreds of thousands of meals claimed were never provided, adding another layer to the systematic theft of public funds meant to help vulnerable populations. The case highlights failures in program oversight that allowed millions in taxpayer money to be diverted from legitimate healthcare needs.