Federal prosecutors have unveiled a series of fraud charges against individuals involved in Medicaid-funded programs in Minnesota, alleging that more than $10 million has been embezzled. At a news conference on Thursday, Assistant U.S. Attorney Joe Thompson indicated that the fraud perpetrated could amount to half or more of the $18 billion disbursed through 14 high-risk Medicaid programs since 2018.
Thompson characterized the situation as “staggering, industrial-scale fraud,” emphasizing that it involved not just a few isolated incidents, but rather an extensive network of deceit. The charges announced involve six individuals, with prior cases bringing the total to seven since September.
Details of the Allegations
Among the new charges, one individual is accused of defrauding state autism services, while five others are linked to the Housing Stabilization Services program. This program is designed to assist individuals with disabilities and those struggling with addiction to secure housing and avoid homelessness.
Notably, two defendants from Philadelphia, Anthony Waddell Jefferson and Lester Brown, are alleged to have exploited the program for personal gain, claiming $3.5 million for services they never provided. They allegedly set up a business in Minnesota to collect Medicaid payments despite having no local ties.
Additionally, Hassan Ahmed Hussein and Ahmed Abdirashid Mohamed face charges for allegedly claiming $750,000 through their company, Pristine Health, LLC. Prosecutors claim that only a small portion of these funds were used for legitimate services, with the remainder financing extravagant travels to various global destinations.
Another individual, Kaamil Omar Sallah, is accused of submitting over $1.4 million in fraudulent claims through his company, SafeLodgings. Following a subpoena issued by a grand jury, Sallah reportedly fled the country in November 2023.
Wider Implications of Medicaid Fraud
Prosecutors allege that Abdinajib Hassan Yussuf exploited the Early Intensive Developmental and Behavioral Intervention benefit aimed at supporting children with autism. His company, Star Autism Center, reportedly submitted inflated claims totaling more than $6 million. Allegations include recruiting children for autism diagnoses and offering parents cash kickbacks for their enrollment.
In a related case, Asha Farhan Hassan pleaded guilty to one count of wire fraud in a scheme involving $14 million. She accepted $465,000 for her involvement.
The U.S. Attorney’s Office has also initiated investigations into Ultimate Home Health Services, a Bloomington-based provider of Integrated Community Services. This program has allegedly claimed over $1.1 million in reimbursements between June 2024 and August 2025, despite evidence suggesting that services were not provided to many clients.
The investigation revealed that one client with severe mental illness was found dead in their apartment, raising serious questions about service accountability. The program, which began in 2021 with a budget of $4.6 million, saw a dramatic increase in expenditures, totaling over $400 million since its inception.
Thompson expressed concern that the scale of fraud observed in Minnesota is unparalleled and suggested that a lack of oversight from state agencies has allowed these actions to persist for too long. He called for a collective responsibility among regulators, law enforcement, and community leaders to address the systemic issues within Medicaid programs.
The ongoing investigations into these fraud schemes indicate a significant vulnerability within state-funded health services, highlighting the need for improved oversight and accountability measures. As authorities continue to pursue charges, the financial implications for the state and the individuals involved remain substantial.
