Thursday , May 28, 2026 (Baidoa Online) -Two Somali women living in Minnesota have been charged in a major healthcare fraud investigation involving more than $21 million in alleged fraudulent Medicaid payments, according to U.S. federal authorities.
The case centers around autism treatment businesses operating in Minnesota, including Smart Therapy Center and Star Autism Center. Prosecutors allege the defendants submitted millions of dollars in false claims to the Medicaid program for services that were either unnecessary or never provided.
Federal investigators say the scheme operated between 2020 and 2024, during which over $46 million in claims were allegedly billed to Medicaid. Authorities claim approximately $21.1 million was illegally obtained through the operation.
According to court documents, some parents were allegedly paid kickbacks to enroll children into autism-related programs, while certain patients were reportedly diagnosed or registered for services without proper medical justification.
Investigators further allege that portions of the funds were used to purchase luxury items, real estate, and overseas investments, including transfers linked to East Africa.
The defendants are facing multiple federal charges, including healthcare fraud, wire fraud, money laundering, and conspiracy. Both women have denied wrongdoing and are expected to appear in federal court as the investigation continues.
U.S. officials describe the case as one of the largest Medicaid fraud investigations in Minnesota’s history. The broader federal probe has so far led to charges against at least 15 individuals connected to healthcare fraud schemes totaling nearly $90 million.
The investigation involves multiple federal agencies, including the FBI and the U.S. Department of Health and Human Services.
Authorities say additional arrests and charges remain possible as the investigation expands.