Federal prosecutors allege the providers billed Medicaid for services that were not medically necessary and offered parents financial incentives to enroll children. The indictment was unsealed in May 2026 and names two Brooklyn Park residents as defendants.
The U.S. Department of Justice announced on May 21, 2026, that an indictment had been unsealed charging Shamso Ahmed Hassan, 55, and Hanaan Mursal Yusuf, 25, both of Brooklyn Park, Minnesota, with a scheme that allegedly defrauded the state’s Medicaid autism program of approximately $46 million [1]. The alleged conduct occurred at two autism therapy clinics operated by the defendants in the Twin Cities metropolitan area, primarily in Brooklyn Park, a suburb of Minneapolis-St. Paul [2].
The indictment alleges that the defendants used fabricated autism diagnoses to submit Medicaid claims for services that were either never rendered or were not medically necessary [1]. Prosecutors also allege the pair provided kickbacks to parents—cash payments and other incentives—to persuade families to bring their children to the clinics, thereby generating additional billable services [1]. The federal complaint cites violations of the False Claims Act, the Anti-Kickback Statute, and state Medicaid fraud statutes [3].
Indictment Details and Alleged Scheme
The complaint describes a coordinated effort in which the defendants purportedly falsified clinical assessments to create the appearance of autism spectrum disorder in children who did not meet diagnostic criteria [1]. Those falsified records were then used to submit claims to Minnesota’s Medicaid autism benefit, a program that funds evidence-based therapies such as Applied Behavior Analysis [1].
According to the indictment, the defendants offered parents cash payments ranging from $500 to $2,000, as well as gift cards and other benefits, contingent on the child’s enrollment in the clinics [1]. In exchange, the parents allegedly consented to the submission of Medicaid claims for therapy sessions, speech-language services, and occupational therapy that were either never performed or were not required by clinical standards [2].
Those falsified records were then used to submit claims to Minnesota’s Medicaid autism benefit, a program that funds evidence-based therapies such as Applied Behavior Analysis [1].
The federal prosecutors assert that the scheme generated roughly $46 million in fraudulent Medicaid reimbursements over an unspecified period, with the majority of the funds billed to the state’s autism program [1]. The indictment also alleges that the defendants maintained detailed financial records to conceal the flow of illicit payments and to misrepresent the volume of services provided [3].
Legal Proceedings and Charges
Two Minnesota Autism Clinics Charged in $46 Million Medicaid Fraud Case
The two defendants were arrested in Brooklyn Park on the day the indictment was unsealed and were each ordered to surrender their passports and remain under supervised release pending trial [1]. Both face multiple counts, including conspiracy to commit health care fraud, making false statements to a federal health care program, and violations of the Anti-Kickback Statute [3].
The Department of Justice’s Health Care Fraud Unit is handling the case, in coordination with the U.S. Department of Health and Human Services Office of Inspector General, which oversees Medicaid integrity [3]. Federal agents conducted a multi-agency investigation that included review of Medicaid billing data, clinic financial statements, and interviews with parents who received alleged kickbacks [2].
If convicted, each defendant could face up to 20 years in federal prison per count, substantial fines, and mandatory restitution to the Medicaid program [3]. The government has indicated that it will seek forfeiture of assets derived from the alleged fraud, including cash, vehicles, and real estate [1].
Immediate Impact on Medicaid and Autism Services
The indictment comes as Minnesota’s Medicaid autism program continues to serve an estimated 12,000 children statewide [4]. State officials have warned that the alleged fraud could reduce the pool of available funds for legitimate providers, potentially leading to longer wait times for therapy services [4].
If convicted, each defendant could face up to 20 years in federal prison per count, substantial fines, and mandatory restitution to the Medicaid program [3].
The Minnesota Department of Human Services announced that it will conduct a review of all claims submitted by the two clinics to verify the legitimacy of services rendered [4]. The department also stated that it will increase oversight of autism-related Medicaid billing, including more frequent audits and tighter verification of diagnostic documentation [4].
Families currently receiving services through Medicaid have been advised that the investigation does not affect existing therapy plans, but that any future enrollment at the implicated clinics will be barred pending the outcome of the case [4]. Advocacy groups for autism families have called for clearer guidance on how to verify provider credentials and ensure that therapy services meet clinical standards [4].
Key Facts
What: Two Minnesota autism therapy providers charged with a $46 million Medicaid fraud scheme involving false diagnoses and parental kickbacks.
When: Indictment unsealed May 21, 2026; alleged fraud occurred over an unspecified period.
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