MN_MEDICAID_FRAUD_INVESTIGATION
├─ potential_total_fraud $9B+ (U.S. Attorney estimate)
├─ confirmed_schemes 3 (FOF, HSS, EIDBI)
├─ estimated_fraud_to_date $822.0M
├─ defendants_charged 98
├─ convictions 57
├─ fugitives 1 (Kaamil Omar Sallah)
└─ cross_scheme_participants 1 (Asha Farhan Hassan)
$9 Billion Fraud Estimate
U.S. Attorney Joseph Thompson stated in December 2025 that total fraud across 14 Minnesota Medicaid programs could exceed $9 billion. Three major schemes have been identified so far, with investigations ongoing.
What is this investigation
Minnesota is experiencing an unprecedented wave of government program fraud. Starting with the $250M+ Feeding Our Future scheme (charged 2022), investigators have uncovered connected fraud in Housing Stabilization Services (HSS) and autism treatment (EIDBI) programs.
The schemes share personnel, methods, and in at least one case, the same defendant participated in multiple schemes. U.S. Attorney Thompson called it a "web" of fraud that has stolen billions in taxpayer money.
The Three Major Schemes
| Scheme | Program | Est. Fraud | Charged | Convicted | Status |
|---|---|---|---|---|---|
| Feeding Our Future | USDA Child Nutrition | $300.0M | 78 | 56 | Ongoing prosecutions |
| Housing Stabilization Services (HSS) | Medicaid | $302.0M | 13 | 0 | Program terminated Oct 2024 |
| Autism/EIDBI Services | Medicaid | $220.0M | 7 | 1 | Active investigation |
| Total (Known) | $822.0M | 98 | 57 | ||
Cross-Scheme Participant Identified
Asha Farhan Hassan (28) is the first documented case of an individual participating in multiple major Minnesota fraud schemes:
- - Smart Therapy LLC / Star Autism Center: $14M EIDBI fraud (pled guilty)
- - Feeding Our Future: Received $465,000 claiming ~200,000 fake meals
Her attorney stated she "wanted to start the business for the right reasons" but "knew at some point that the fraud began, and she let it continue."
HSS Fraud Defendants (September 2025)
First wave of charges - 8 defendants, ~$8M in fraudulent billing
| Name | Age | Company | Role |
|---|---|---|---|
| Moktar Hassan Aden | 30 | Brilliant Minds Services LLC | Principal |
| Mustafa Dayib Ali | 29 | Leo Human Services LLC | Principal |
| Khalid Ahmed Dayib | 26 | Leo Human Services LLC | Principal |
| Abdifitah Mohamud Mohamed | 27 | Liberty Plus LLC | Principal |
| Christopher Adesoji Falade | 62 | Faladcare LLC | Principal |
| Emmanuel Oluwademilade Falade | 32 | Faladcare LLC | Principal |
| Asad Ahmed Adow | 26 | Unknown | Defendant |
| Anwar Ahmed Adow | 25 | Unknown | Defendant |
HSS Fraud Defendants (December 2025)
Second wave - includes "fraud tourism" case from Philadelphia
| Name | Age | Company | Notes |
|---|---|---|---|
| Anthony Waddell Jefferson | 37 | Chozen Runner LLC | Philadelphia - "fraud tourism" |
| Lester Brown | 53 | Retsel Real Estate LLC | Philadelphia - "fraud tourism" |
| Hassan Ahmed Hussein | - | Unknown | - |
| Ahmed Abdirashim Mohamed | - | Unknown | - |
| Abdinajib Hassan Yussuf | - | Unknown | - |
"Fraud Tourism": Two Philadelphia men heard Minnesota's HSS program was "easy money," traveled to Minnesota to enroll their companies, returned to Philadelphia, and submitted $3.5M in fraudulent claims remotely.
Autism/EIDBI Fraud Defendants
Estimated $220M in fraud - investigation ongoing
| Name | Company | Status | Notes |
|---|---|---|---|
| Asha Farhan Hassan | Smart Therapy LLC / Star Autism Center LLC | Pled Guilty | Cross-scheme: Also received $465K from FOF |
| Kaamil Omar Sallah | SafeLodgings Inc. | FUGITIVE | 4 counts wire fraud |
| Unknown | Pristine Health LLC | Charged | - |
FUGITIVE: Kaamil Omar Sallah
Owner of SafeLodgings Inc. Charged with 4 counts of wire fraud for EIDBI autism services fraud. Currently wanted by federal authorities. His flight suggests substantial evidence against him.
Charged Companies
| Company | Scheme | Known Fraud | Status |
|---|---|---|---|
| Smart Therapy LLC | EIDBI | $14.0M | Owner pled guilty |
| Star Autism Center LLC | EIDBI | - | Under investigation |
| SafeLodgings Inc. | EIDBI | - | Owner fugitive |
| Pristine Health LLC | EIDBI | - | Charged |
| Brilliant Minds Services LLC | HSS | - | Principals charged |
| Leo Human Services LLC | HSS | - | Principals charged |
| Liberty Plus LLC | HSS | - | Principals charged |
| Faladcare LLC | HSS | - | Principals charged |
| Chozen Runner LLC | HSS | $3.5M | Fraud tourism case |
| Retsel Real Estate LLC | HSS | $3.5M | Fraud tourism case |
Uninvestigated Lead: 2104 Park Ave S Cluster
Five healthcare/staffing businesses operating from a single small commercial building. One business alone received $42M in DHS payments from 2021-2025.
| Business | Suite | Owner | PPP | Jobs | DHS Payments | Notes |
|---|---|---|---|---|---|---|
| Alpha Home Care Provider | 102 | Mohamed Ibrahim Adur | $698K | 141 | $42.0M | $9M/year from small suite; 141 jobs claimed |
| Minnesota Staffing LLC | 104 | Unknown (Female-owned) | $1.2M | 479 | - | Two PPP loans ($608K each); 479 jobs from Suite 104 |
| First Choice Home Care Inc | Main | Najah Ahmed Barkhadle | $165K | 53 | - | 2 DHS correction orders (2022, 2023) |
| Agan Home Care Inc | 110 | Unknown | $76K | 12 | - | Serves East African immigrant community |
| Aspen Housing Services LLC | 8B | Unknown | - | - | - | HSS provider - program flagged for fraud |
| Total at Address | $2.2M | 685+ | $42.0M | |||
Why This Is Suspicious
- 141 employees claimed from a single small suite
- $9M/year in billing from Suite 102 alone
- 5 businesses in one building serving vulnerable populations
- One tenant (First Choice) has 2 DHS correction orders
- HSS provider at same address (program terminated for fraud)
Verified Data Sources
- PPP: SBA PPP Loan Data (Loan #2246227403)
- DHS Payments: OpenTheBooks.com MN Checkbook
- Licenses: MN DHS License Lookup
- Address: Hennepin County Parcel 27053-3502924220076
Status: No charges filed as of January 2026. This cluster has not been publicly linked to any fraud investigation.
How the Fraud Works
EIDBI (Autism) Fraud Pattern
- Recruit children from community (often Somali)
- Get children diagnosed for autism services
- Pay parents $300-$1,500/month kickbacks
- Hire unqualified staff (18-19 year olds, no training)
- Bill Medicaid for services not rendered
HSS (Housing) Fraud Pattern
- Register company as HSS provider
- Submit claims for housing services
- Services never actually provided
- Some operated entirely out-of-state
- Program had minimal verification
EIDBI Program Growth (Red Flag)
Provider Growth
700%
41 to 328 providers (2018-2024)
Payment Growth
3,000%
$6M to $192M (2018-2024)