EXCLUSIVE: DHS Vows Crackdown After $21 Million Autism Fraud Scheme

Federal authorities have arrested two Minnesota women accused of orchestrating a $21.1 million Medicaid fraud scheme tied to autism treatment programs, the latest bombshell case in what Trump administration officials describe as a deeply entrenched culture of public assistance fraud in the state.

The Department of Homeland Security announced this week that Homeland Security Investigations, alongside federal partners, arrested Shamso Ahmed Hassan and Hanaan Mursal Yusuf on charges including conspiracy to commit health care fraud, eight counts of health care fraud, and two counts of money laundering.

“These Minnesota residents have been accused of stealing more than $21 million from the American taxpayer,” Acting Assistant Secretary Lauren Bis said in an exclusive statement to The Daily Wire. “Their Medicaid fraud scheme started during the COVID pandemic and lasted for four years.”

“HSI continues to zero in on the rampant fraud in Minnesota,” Bis added. “Under Secretary [Markwayne] Mullin, we will end the defrauding of the American people.”

According to prosecutors, Hassan was a beneficial owner of Smart Therapy Center LLC and Star Autism Center LLC, both of which were enrolled in Minnesota’s Early Intensive Developmental and Behavioral Intervention program, commonly known as EIDBI.

Federal authorities say the two women carried out the fraud scheme between May 2020 and December 2024 by submitting Medicaid claims for autism treatment services that were never provided.

The indictment claims that Hassan and her co-conspirators recruited parents to enroll children in the autism programs regardless of medical necessity and paid families monthly kickbacks ranging from roughly $300 to $1,500.

Between 2020 and 2024, prosecutors say Hassan billed Minnesota Medicaid for approximately $46.6 million and ultimately received around $21.1 million in taxpayer funds. Authorities allege portions of the money were used to purchase property, while additional funds were transferred overseas.

Hassan pleaded not guilty Tuesday morning to charges of health care fraud and money laundering. She was not taken into custody following her court appearance, according to local reporting. Neither Hassan nor her attorney answered questions while leaving the courthouse.

The case stems from a broader federal investigation into Minnesota fraud networks that intensified following the infamous Feeding Our Future scandal, the $250 million pandemic food-aid fraud scheme that drew national attention.

Federal agents previously raided Smart Therapy Center’s Minneapolis office and Star Autism Center’s St. Cloud location in December 2024. One of Smart Therapy Center’s other owners later pleaded guilty to wire fraud charges.

The arrests also come days after federal prosecutors announced charges against 15 additional defendants accused of stealing more than $90 million through multiple Minnesota Medicaid and social service programs.

During a press conference in Minneapolis earlier this month, Trump administration officials described Minnesota as ground zero for large-scale fraud involving taxpayer-funded programs intended to serve vulnerable populations, including disabled individuals, homeless residents, and children with autism.

Assistant Attorney General Colin McDonald called the fraud uncovered in Minnesota “shocking,” warning that state-managed benefit systems had become targets for organized criminal schemes.

Autism-related Medicaid programs became a central focus of the press conference, with prosecutors noting that one such program reportedly ballooned from roughly $600,000 annually six years ago to nearly $400 million today.

Health and Human Services Secretary Robert F. Kennedy Jr. previously described the Minnesota autism fraud operations as “the largest autism fraud bust in American history.”

“This was organized theft that exploited the most vulnerable children in America,” Kennedy said.

Federal officials have tied the Minnesota investigations to the Trump administration’s broader anti-fraud initiative spearheaded by Vice President JD Vance, which has focused heavily on rooting out fraud, waste, and abuse in public assistance programs.

“Fraud is going to bleed our social programs dry,” White House Anti-Fraud Task Force Vice Chair Andrew Ferguson warned during the Minneapolis press conference. “Stopping fraud is how we save these programs.”

The investigation is being led by the FBI with assistance from Homeland Security Investigations.

Both suspects are expected to remain in federal custody pending further judicial proceedings.