FBI agents raided two Minnesota autism care providers Thursday morning, marking a significant development in an ongoing investigation into alleged Medicaid fraud.
The two providers have ties to the Feeding Our Future fraud case, according to a search warrant unsealed Wednesday, and received more than $9 million in federal Medicaid payments for their autism work between 2021 and 2023.
The two care centers raided Thursday are Smart Therapy Center in Minneapolis and Star Autism Center in St. Cloud, which both cater to East African clients. Smart Therapy Center allegedly received $3.3 million in Medicaid payments, while Star Autism received over $6 million.
No charges have been filed in the case.
“Since 2017, dozens and dozens of autism centers and other companies purporting to offer [Early Intensive Developmental and Behavioral Intervention] treatment have been created in Minnesota, including by several individuals involved in the ‘Feeding Our Future’ fraud scheme to obtain federal child nutrition program funds,” the search warrant states.
The search warrant lists “Individual A.H.” as the person who registered and co-owns Smart Therapy Center. Records from the Minnesota Secretary of State’s Office name Asha Hassan as the person who registered Smart Therapy Center with the state.
A phone number listed for Smart Therapy Center connected to an unrelated automated vacation traveling service.
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The search warrant identifies “Individual A.H.Y.” as the person who registered Star Autism Center. Records from the Minnesota Secretary of State’s Office name Abdinajib Hassan Yusuf as the person who registered Star Autism Center with the state.
Abdinajib did not return a message seeking comment Thursday afternoon.
Federal agents noticed a sharp increase of Medicaid payments for a state program called the Early Intensive Developmental and Behavioral Intervention benefit. The benefit offers behavioral therapy to people under 18 diagnosed with autism spectrum disorder, and includes promoting their independence and training family members how to support them.
The Medicaid payments for autism services in Minnesota jumped nearly $200 million from 2020 to 2024.
“The investigation has found substantial evidence that many of these companies have been submitting fraudulent claims for [Early Intensive Developmental and Behavioral Intervention] services that were not actually provided or that were not covered by the [Early Intensive Developmental and Behavioral Intervention] program,” the search warrant states.
Although Medicaid is a federal program, the Minnesota Department of Human Services (DHS) administers the Medicaid dollars for Early Intensive Developmental and Behavioral Intervention. Department Commissioner Jodi Harpstead issued a written statement confirming that DHS is investigating the two treatment centers.
“We work closely with our state and federal law enforcement partners in oversight of these and other Medicaid programs,” Harpstead’s statement said. “DHS continues to gather and evaluate new information.
“Because of concerns about the integrity of autism services, we have stepped up our oversight and are conducting a thorough audits of the program. DHS is in the process of visiting every single site that participates in this program. We are digging further into cases where we note concerns and will conduct formal investigations if and where needed.”
The payments for autism treatment grew from $32 million in 2020 to $81 million in 2021, according to the search warrant. Payments reached $133 million in 2022 and $201 million in 2023. This year, that number topped off at $228 million.
The exponential growth in these payments reflected a similar growth in how federal funds were awarded to organizations in Minnesota in the Feeding Our Future case, federal investigators wrote in the search warrant.
Feeding Our Future connection
In the Feeding Our Future case, the Minnesota Department of Education (MDE) distributed federal food-aid money to the nonprofits Feeding Our Future and Partners in Quality Care, which distributed it further to food vendors and food sites that were supposed to feed children.
Some organizations along the chain reported serving more meals than they actually did in order to receive more federal money. Some never served any meals at all despite claiming that they had. Federal authorities say suspects stole $250 million from the federal government.
Smart Therapy Center participated in the Feeding Our Future scheme for two years, Wednesday’s search warrant alleges, netting $465,000 in federal child nutrition programs dollars for “grossly inflated” meals claims reported through Feeding Our Future. No one with the center is charged in the Feeding Our Future case.
Aimee Bock, the former executive director of Feeding Our Future who is charged as a leader in the fraud, signed an application in July 2020, for Smart Therapy Center to become a food site, according to the search warrant.
The state was hesitant to admit an autism center to the program, but in a September 2020 email, Bock justified the site to MDE, comparing the therapy center to a daycare where “the parent drops the child off and leaves them there for several hours,” the warrant says.
In December 2020, Smart Therapy Center began submitting paperwork reporting the number of meals it served in order to receive reimbursement from the federal government.
The search warrant alleges that Smart Therapy Center, which is located in a strip mall on Nicollet Avenue near downtown Minneapolis, claimed to feed breakfast and lunch to more than 600 children a day, seven days a week at one point.
Smart Therapy Center used S&S Catering as its food vendor, according to the search warrant. Qamar Hassan, the owner of S&S Catering, pleaded guilty last year to money laundering and conspiracy to commit wire fraud in the Feeding Our Future case.
Qamar admitted to submitting false invoices for meals that were never provided. The invoices consisted of fake meal counts for each day, according to the indictment against Qamar. Qamar’s indictment and plea hearing did not mention Smart Therapy Center.
Federal agents believe that a co-owner of Smart Therapy Center is related to Qamar, according to the search warrant.
At least 12 of the 70 defendants charged in the Feeding Our Future investigation owned or received money from clinics that provided autism services, according to the search warrant.
The federal government took note of this during the Feeding Our Future investigation, and the U.S. Attorney’s Office asked the FBI and the federal Health and Human Services Department to review claims for the autism treatment benefit.
The search warrant does not identify any Feeding Our Future defendants who are allegedly part of the Medicaid fraud investigation.
How the alleged Medicaid fraud occurred
An employee at Smart Therapy Center who worked as a behavioral technician and then as a supervisor reported the alleged fraud to the FBI, according to the search warrant.
The employee told FBI agents that most of Smart Therapy Center’s employees were “18- or 19-year-old relatives of the owners who had no formal education beyond high school and no training or certification related to the treatment of autism.”
Smart Therapy Center’s owners hired these employees, according to the employee, because they were relatives of the owners, cheap labor and were unlikely to “question what was going on at the company.”
The employee explained that a typical day at the clinic involved clients being dropped off at 9:00 a.m. by hired drivers “who billed the state of Minnesota for the transportation services they provided.” Each of these clients were assigned to a behavioral technician tasked with supporting them and giving them therapy.
But the technicians would often arrive at the office around 11 a.m. or later, the employee told FBI agents, even though the supervisors would bill Medicaid for the whole day.
“Some of the behavioral technicians tried to work on ‘goals’ with their clients, but the younger behavioral technicians (who were related to the owners) were usually just on their phones all day,” the employee said, according to the search warrant.
The employee added that many of the clients “did not appear autistic.” The employee also told FBI agents that Smart Therapy’s owner recruited new clients by “talking to parents they knew and even knocking on doors in the community and trying to talk parents into getting their children into autism treatment.”
The employee believed that “Smart Therapy’s owners paid parents of clients to bring their children to Smart Therapy,” according to the search warrant.
The search warrant also alleges that Smart Therapy billed Medicaid for claims by three service providers who did not actually work for Smart Therapy. For example, Smart Therapy allegedly reported to Medicaid that an outside service provider completed 1,555 hours of work, and received $90,000 in reimbursements.
But state employer records show that Smart Therapy only paid $1,900 in total wages to the outside service provider, according to the search warrant.
Smart Therapy Center also allegedly billed Medicaid for 85 claims and received $33,000 for services from another provider. However, that provider, who is not identified by name in the warrant, told FBI agents that they only provided $300 worth of training to Smart Therapy Center and never worked for the organization.
Star Autism Center
Star Autism Center, which was founded in St. Cloud in August 2020, allegedly obtained Medicaid payments for services that were never provided.
The center billed Medicaid for autism services provided by medical providers who did not actually work for the company or who received little to no money for providing the services. The warrant says some providers were not in the United States at times when Star Autism said they were providing services.
Star Autism received almost $10,000 in Medicaid payments for a provider’s services when they were outside the country, the search warrant says.
Star Autism Center provided a number of “improbably large” claims for services for some clients, the search warrant says. Star Autism Center also allegedly billed Medicaid for services that took place when clients were not available for therapy, such as clients who were in school at the time.
The Minnesota Department of Human Services investigated Star Autism Center in 2022, after receiving a complaint, the search warrant says. The person who complained had conducted an on-site visit at the center and found missing intake documents and personnel files. Signatures were also pre-printed on records. The Department of Human Services referred the case to the Medicaid Provider Audits and Investigations Unit (MPAI) for further investigation.
MPAI reviewed Medicaid claims from the center between February 2021 and February 2022. The investigation found 191 claims with no documents to support the services, and more than 1,400 claims where the provider did not meet qualifications. The case was referred to the Minnesota Attorney General’s Office for investigation.
UPDATE: The story has been updated with a statement from the Minnesota Department of Human Services.
Staff reporter Andrew Hazzard contributed to this report.
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