Federal prosecutors allege the defendants billed taxpayer-funded programs for services that were not provided or were supported by false records.
MINNEAPOLIS, MN — Four Minnesota residents have been charged in separate federal Medicaid fraud cases involving more than $40 million in allegedly fraudulent claims, part of a wider Justice Department enforcement push targeting taxpayer-funded benefit programs in the state.
The cases announced by federal officials involve Medicaid programs that provide autism therapy, in-home support and community-based services to people with disabilities. The four defendants are accused in schemes totaling about $40.5 million based on figures released by the Justice Department. The charges are allegations, and the defendants are presumed innocent unless proven guilty.
Feisal Mohamed Elmi, 46, of New Brighton, was indicted Oct. 22 on 11 counts of health care fraud in connection with an alleged $8.2 million scheme involving Minnesota’s Early Intensive Developmental and Behavioral Intervention program, which provides services to children and young adults with autism and related conditions. Prosecutors allege Elmi submitted claims for services that were not provided and for work supposedly performed by employees while they were traveling outside the United States. Authorities also said nearly every claim was billed at the same amount regardless of the service or number of hours provided.
Habiba Mohamed, 58, of Coon Rapids, was charged by information Oct. 29 with conspiracy to defraud the United States in an alleged $19.1 million scheme involving the same autism therapy program. Prosecutors allege Mohamed and previously charged co-conspirators submitted fraudulent claims and that Mohamed paid kickbacks to parents of Medicaid recipients in exchange for allowing claims to be submitted for services connected to their children.
According to charging documents reported by the Minnesota Star Tribune, Mohamed worked as clinical director of Smart Therapy Center LLC from about September 2022 through September 2024 and held a 10% ownership interest. Prosecutors allege parents were offered payments ranging from $300 to $1,500 per month to enroll Medicaid-eligible children. The government alleges the business submitted about $19.8 million in fraudulent claims over roughly two years and received about $7.7 million in reimbursements. Those allegations have not been proven in court.
Faiza Osman Ahmed, 41, of Richfield, was indicted Oct. 28 on six counts of health care fraud tied to an alleged $10 million scheme involving several Minnesota Medicaid programs. The Justice Department said the programs included Individualized Home Supports, Personal Care Assistance and Night Supervision. Prosecutors allege Ahmed billed Medicaid for services that were never provided, including care supposedly delivered in recipients’ homes while the recipients were traveling or while workers were at other jobs.
Jama Yusuf Mohamod, 68, of Maple Grove, was indicted Oct. 28 on eight counts of health care fraud in an alleged $3.2 million scheme involving Minnesota’s Integrated Community Supports program. Federal prosecutors say Mohamod billed for services that were not performed and for services supposedly provided to recipients at home while the recipients were traveling. Prosecutors also allege he used an artificial intelligence tool called Super Intelligence to create false patient notes intended to support claims submitted to Medicaid.
The four cases are part of a broader federal fraud investigation in Minnesota. The Justice Department said Oct. 30 that, between Sept. 30 and that date, federal prosecutors had charged, convicted or obtained sentences against 13 defendants whose alleged or proven schemes involved nearly $83 million in intended losses. About $29.1 million was attributed to newly charged cases included in the department’s latest enforcement announcement.
Federal authorities said they have issued more than 1,000 subpoenas and executed more than 40 premises warrants in Minnesota fraud investigations during 2026. FBI Director Kash Patel said federal and state authorities executed 17 search warrants on Oct. 29 as investigators continued examining suspected fraud involving health care and other public-benefit programs. The searched locations included autism service providers, child care centers and residences connected to some businesses, according to local reporting.
The investigations involve several federal and state agencies, including the FBI, the Department of Health and Human Services Office of Inspector General, IRS Criminal Investigation, Homeland Security Investigations and Minnesota enforcement agencies. Prosecutors said the cases are being handled jointly by the Justice Department’s National Fraud Enforcement Division and the U.S. Attorney’s Office for the District of Minnesota.
The criminal cases remain pending. Federal officials have said their Minnesota fraud investigations are continuing, while additional indictments and enforcement actions may be filed as investigators review financial records, Medicaid claims and other evidence. No final determination of guilt has been made against the defendants in the newly charged cases.
Author note: Last updated October 31, 2026.