MINNEAPOLIS, MN - On Thursday, December 12th, two different autism treatment centers were raided by the FBI after a search warrant was executed to investigate the centers for fraudulent claim for services that were never provided.
According to CBS News, the FBI and state investigators raided the Smart Therapy Center's business office in Minneapolis and the Star Autism Center's office in St. Cloud. The federal search warrant states that the investigation into the autism treatment centers is a direct outgrowth of the investigation into the $240 million Feed Our Future scandal that has resulted in 70 indictments and almost 30 guilty pleas or convictions, closely linked to the Twin Cities' immigrant Somalian community.
The Minnesota Department of Human Services said this summer that 15 Minnesota autism centers were under investigation for fraud, included in those were the two centers raided this past Thursday. In this specific case, the alleged scheme is that both of the centers charged Medicaid millions for care that they did not provide.
According to FOX 9, the 54-page federal search warrant outlines an investigation into wire fraud, healthcare fraud, and conspiracy. It states that Smart Therapy received nearly $14 million in state funds since 2019, while Star Autism has received more than $6 million since 2020. Since 2017, Medicaid reimbursement claims in Minnesota have reportedly jumped from just under $2 million to more than $250 million.
The Feeding Our Future case involved hundreds of millions of dollars in fraudulent meal claims. The FBI says that they noticed a connection between the schemes. The warrant states, "At least a dozen of the defendants charged for their role in the Feeding Our Future scheme owned, received money from, or were associated with autism clinics and other healthcare companies that received state funds."
Witnesses told investigators that the owners of these clinics recruited clients by talking to parents they knew, even going door to door. The warrant also alleges that some parents were paid to bring their children to the clinics.
In some cases, investigators believe that children were not even present. Medicaid was allegedly billed for services when children were at school or, in one case, at home recovering from surgery. The warrant alleges that bills were submitted for work by people who didn't work at the centers or by medical providers who were not in the country.
According to MPR News, Minnesota Human Services Commissioner Jodi Harpstead said in a statement, "DHS has open investigations into these providers. We work closely with our state and federal law enforcement partners in oversight of these and other Medicaid programs. DHS continues to gather and evaluate new information."
Harpstead added, "Because of concerns about the integrity of autism services, we have stepped up our oversight and are conducting thorough audits of the program. DHS is in the process of visiting every single site that participates in this program. We are digging further into cases where we note concerns and will conduct formal investigations if and where needed."
The FBI has not filed any charges in the autism center investigation as it remains ongoing.
According to CBS News, the FBI and state investigators raided the Smart Therapy Center's business office in Minneapolis and the Star Autism Center's office in St. Cloud. The federal search warrant states that the investigation into the autism treatment centers is a direct outgrowth of the investigation into the $240 million Feed Our Future scandal that has resulted in 70 indictments and almost 30 guilty pleas or convictions, closely linked to the Twin Cities' immigrant Somalian community.
The Minnesota Department of Human Services said this summer that 15 Minnesota autism centers were under investigation for fraud, included in those were the two centers raided this past Thursday. In this specific case, the alleged scheme is that both of the centers charged Medicaid millions for care that they did not provide.
According to FOX 9, the 54-page federal search warrant outlines an investigation into wire fraud, healthcare fraud, and conspiracy. It states that Smart Therapy received nearly $14 million in state funds since 2019, while Star Autism has received more than $6 million since 2020. Since 2017, Medicaid reimbursement claims in Minnesota have reportedly jumped from just under $2 million to more than $250 million.
The Feeding Our Future case involved hundreds of millions of dollars in fraudulent meal claims. The FBI says that they noticed a connection between the schemes. The warrant states, "At least a dozen of the defendants charged for their role in the Feeding Our Future scheme owned, received money from, or were associated with autism clinics and other healthcare companies that received state funds."
Witnesses told investigators that the owners of these clinics recruited clients by talking to parents they knew, even going door to door. The warrant also alleges that some parents were paid to bring their children to the clinics.
In some cases, investigators believe that children were not even present. Medicaid was allegedly billed for services when children were at school or, in one case, at home recovering from surgery. The warrant alleges that bills were submitted for work by people who didn't work at the centers or by medical providers who were not in the country.
According to MPR News, Minnesota Human Services Commissioner Jodi Harpstead said in a statement, "DHS has open investigations into these providers. We work closely with our state and federal law enforcement partners in oversight of these and other Medicaid programs. DHS continues to gather and evaluate new information."
Harpstead added, "Because of concerns about the integrity of autism services, we have stepped up our oversight and are conducting thorough audits of the program. DHS is in the process of visiting every single site that participates in this program. We are digging further into cases where we note concerns and will conduct formal investigations if and where needed."
The FBI has not filed any charges in the autism center investigation as it remains ongoing.
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