The U.S. Department of Justice announced criminal charges against 15 people on May 21, 2026, for allegedly defrauding Minnesota's Medicaid programs of more than $90 million. Federal authorities describe the case as the largest autism fraud scheme ever charged by the Department of Justice.

The charges target operators of autism and childcare centers who allegedly paid kickbacks to families to fraudulently diagnose children with autism and bill Medicaid for services that were either unnecessary or never provided. Search warrants were served at nearly two dozen facilities in late 2025.

What the Scheme Involved

Prosecutors allege that two autism service providers, Smart Therapy and Star Autism, fraudulently billed Medicaid more than $46 million between 2020 and 2024. The centers allegedly paid kickbacks of up to $1,500 per month, per child, to families in exchange for using their children's names to generate fraudulent claims.

According to federal officials, the operators treated disabled children "like lottery tickets" to generate millions of dollars in fraudulent reimbursements. One defendant, Fahima Egeh Mahamud, allegedly obtained $4.6 million in fraudulent Medicaid payments.

The scheme contributed to an explosion in Early Intensive Developmental and Behavioral Intervention (EIDBI) claims in Minnesota. EIDBI claims skyrocketed from over $600,000 in 2018 to more than $400 million by 2025, according to the DOJ announcement.

The charges span seven separate state-managed programs that serve children and adults with disabilities.

What This Means for Families

Fraud at this scale harms the disability community in three direct ways.

First, it diverts resources from legitimate services. Every dollar spent on fraudulent claims is a dollar unavailable for families who need real autism support.

Second, fraudulent diagnoses carry lifelong consequences. Children diagnosed with autism solely to generate billing claims may carry that label through their medical and educational records, affecting IEP eligibility, insurance coverage, and access to services they don't need while masking conditions they do have.

Third, increased scrutiny following fraud cases can make it harder for families to access legitimate providers. States may tighten eligibility requirements or add administrative barriers that delay care for everyone, not just those involved in fraud schemes.

Red Flags Families Should Know

Legitimate autism service providers don't offer cash incentives to families. They don't push for diagnoses that aren't medically warranted. They don't bill for services you didn't receive.

Here's what to watch for:

• A provider offers you money or gifts in exchange for enrolling your child
• You're told your child has autism without a comprehensive evaluation from a qualified diagnostician
• Billing statements show hours of therapy that don't match what your child received
• The provider pressures you to keep enrollment active even when services aren't being delivered

If you see any of these signs, you may be witnessing fraud.

How to Verify Your Provider

Before enrolling in any autism service program, check the provider's credentials through your state licensing board. In Minnesota, that's the Minnesota Department of Human Services.

Ask these questions:

• Is your facility licensed by the state to provide EIDBI services?
• Who will be conducting my child's diagnostic evaluation, and what are their qualifications?
• How do you bill Medicaid, and will I receive documentation of services rendered?
• Can I speak with other families whose children receive services here?

Legitimate providers welcome these questions. Fraudulent ones deflect or pressure you to move forward without answers.

What to Do if You Suspect Fraud

If you suspect a provider is committing Medicaid fraud, report it to your state Medicaid office. In Minnesota, families can file a complaint through the Minnesota Department of Human Services fraud reporting portal.

You can also report suspected healthcare fraud to the U.S. Department of Health and Human Services Office of Inspector General at 1-800-HHS-TIPS (1-800-447-8477).

Reports can be filed anonymously. Federal law protects whistleblowers from retaliation.

If your child received a diagnosis from a provider you now suspect was fraudulent, contact your child's pediatrician or a qualified developmental pediatrician for an independent evaluation. You have the right to seek a second opinion, and your insurance should cover it.

The Federal Response

Top federal officials, including Health Secretary Robert F. Kennedy Jr. and Centers for Medicare and Medicaid Services Administrator Mehmet Oz, joined U.S. Attorney Andy Luger in Minneapolis to announce the charges.

The DOJ announced a major expansion of fraud enforcement in the region, including extending the federal Healthcare Fraud Midwest Strike Force into Minnesota and hiring 15 additional prosecutors nationwide dedicated to combating Medicaid fraud.

The full DOJ press release is available on the Justice Department's website.

Families who rely on Medicaid-funded autism services deserve legitimate care from qualified providers. Fraud schemes like this one don't just steal public funds: they steal trust, time, and resources from children who need real support.