RFK Jr. Announces $46.6 Million Autism-Services Medicaid Fraud Case
Health and Human Services Secretary Robert F. Kennedy Jr. announced what officials described as the “largest autism fraud bust in American history” after federal prosecutors charged two Minnesota defendants in a $46.6 million Medicaid fraud scheme tied to autism treatment services. The investigation became part of a wider healthcare fraud takedown involving 15 defendants and more than $90 million in alleged fraud across several Medicaid-funded programs.
Federal prosecutors accused Shamso Ahmed Hassan and Hanaan Mursal Yusuf of exploiting Minnesota’s Early Intensive Developmental and Behavioral Intervention (EIDBI) program, which provides therapy and developmental services for children with autism spectrum disorder. According to investigators, the pair allegedly paid kickbacks to parents, submitted claims for medically unnecessary services, and billed Medicaid for therapy sessions prosecutors say never happened.
Officials alleged the defendants submitted approximately $46.6 million in fraudulent reimbursement claims and received more than $21 million in payouts through Medicaid. Kennedy accused the operators of exploiting vulnerable families while diverting resources away from children who genuinely needed autism support and treatment services.
Minnesota’s Autism Program Expanded Rapidly
Federal officials said Minnesota’s autism-services program grew dramatically over the last several years, creating opportunities for fraud to spread through the healthcare system. Minnesota became one of the first states to offer Medicaid coverage for EIDBI autism services in 2017, greatly expanding access to therapy and developmental care for children under 21.
According to DOJ investigators, EIDBI claims increased from roughly $600,000 in 2018 to more than $400 million by 2025. Prosecutors suggested the rapid growth may have outpaced oversight systems designed to verify medical necessity and monitor provider billing practices. Authorities accused the defendants of taking advantage of that explosive growth through large-scale fraudulent billing operations.
Federal investigators also alleged the defendants used fraud proceeds for personal enrichment, including real estate purchases and international money transfers. Prosecutors claimed portions of the money were transferred overseas, including to Kenya, while Medicaid programs continued paying claims connected to autism therapy services.
Federal Investigators Uncovered Multiple Medicaid Schemes
The autism-services case represented only one portion of a broader Minnesota healthcare fraud crackdown. Federal prosecutors charged 15 defendants connected to schemes targeting Medicaid-funded disability support, housing assistance, and childcare programs. Officials described the overall scale of alleged fraud as “staggering.”
One investigation focused on Minnesota’s Integrated Community Supports program, which helps disabled individuals live independently instead of entering institutional care facilities. Prosecutors accused one defendant of billing Medicaid for services that vulnerable patients allegedly never received. According to federal documents, one patient requiring around-the-clock care was reportedly found dead shortly after providers billed for services prosecutors say were never delivered.
Another case involved Minnesota’s Individualized Home Supports program, where authorities alleged defendants concealed ownership interests in residential properties while billing Medicaid for disability services tied to those homes. Prosecutors also accused several defendants of using fraud proceeds to purchase luxury vehicles, jewelry, and additional real estate properties.
DOJ Expands Nationwide Medicaid Fraud Enforcement
Following the Minnesota takedown, the Justice Department announced a major expansion of federal healthcare fraud enforcement operations nationwide. Officials said the DOJ will add 15 new prosecutors focused specifically on Medicaid fraud investigations as part of a broader effort to combat abuse involving taxpayer-funded healthcare programs.
Assistant Attorney General Colin McDonald said organized fraud schemes increasingly target Medicaid systems designed to help children, disabled adults, seniors, and low-income families. Federal agencies, including the FBI, IRS Criminal Investigation Division, Homeland Security Investigations, and HHS-OIG, all participated in the Minnesota investigation.
The Justice Department also expanded its Midwest Health Care Fraud Strike Force to include Minnesota alongside existing operations in Chicago and Detroit. Officials stressed that all charges remain allegations unless proven in court, but investigators signaled that similar healthcare fraud investigations could continue expanding across the country.