WASHINGTON, United States — Two Minnesota residents have been arrested in the United States over an alleged healthcare fraud scheme that investigators say defrauded Medicaid of more than $21 million (about Sh2.7 billion) over a four-year period.
The United States Department of Homeland Security (DHS) confirmed that U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) arrested Shamso Ahmed Hassan and Hanaan Mursal Yusuf on charges linked to healthcare fraud and money laundering.
According to US authorities, the two suspects face conspiracy to commit healthcare fraud, eight counts of healthcare fraud, and two counts of money laundering.
Alleged Fraud Ran for Four Years
Investigators allege that the fraud scheme operated between May 2020 and December 2024 through two companies — Smart Therapy Center LLC and Star Autism Center LLC.
Authorities said Hassan was a beneficial owner of both firms and had enrolled as a service provider under Minnesota’s Early Intensive Developmental and Behavioral Intervention (EIDBI) programme, which supports children with autism and related conditions.
Court documents indicate that Hassan also worked as the lead biller for Smart Therapy Center LLC and was responsible for submitting Medicaid reimbursement claims.
US investigators allege the companies submitted false and fraudulent claims to Medicaid, resulting in payments amounting to approximately $21.1 million.
DHS Says Crackdown on Fraud Ongoing
The Department of Homeland Security described the case as part of broader efforts targeting financial fraud schemes in Minnesota.
“These Minnesota residents have been accused of stealing more than $21 million from the American taxpayer,” said Acting Assistant Secretary Lauren Bis in a statement released by DHS.
“Their Medicaid fraud scheme started during the COVID pandemic and lasted for four years. ICE continues to zero in on the rampant fraud in Minnesota,” she added.
Authorities further stated that the suspects will remain in federal custody pending court proceedings.
FBI Leading Investigation
The investigation is being led by the Federal Bureau of Investigation (FBI) with assistance from Homeland Security Investigations.
US authorities noted that both suspects are American citizens, although Hassan was reportedly naturalised later in life.
