Federal authorities have announced another major fraud case in Minnesota, charging two women with allegedly orchestrating a massive Medicaid scheme that prosecutors say siphoned more than $21 million from taxpayers over a four-year period.
According to federal court filings, Shamso Ahmed Hassan and Hanaan Mursal Yusuf have been charged with health care fraud and money laundering in connection with what investigators describe as an extensive operation involving false Medicaid claims submitted through two Minnesota-based businesses. Authorities allege that Hassan owned and operated Smart Therapy Center LLC and Star Autism Center LLC, companies that were used to bill Medicaid for services that either were not provided or were fraudulently represented.
Prosecutors say the alleged scheme began during the COVID-19 pandemic and continued for approximately four years, ultimately resulting in about $21.1 million in fraudulent claims being paid out through taxpayer-funded programs. Both Hassan and Yusuf are U.S. citizens, according to federal authorities.
The arrests were carried out as part of a broader federal effort to investigate fraud involving public assistance and health care programs in Minnesota, a state that has drawn increasing scrutiny in recent years because of several high-profile fraud cases involving government-funded programs.
Acting Assistant Secretary Lauren Bis said federal authorities are intensifying their focus on fraud investigations and vowed to continue pursuing those who misuse taxpayer dollars.
“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,” Bis said. “Under Secretary Mullin, we will end the defrauding of the American people.”
The case adds to a growing list of investigations involving alleged abuse of government-funded programs in Minnesota. Over the last several years, federal prosecutors have brought charges in multiple large-scale fraud cases involving pandemic relief funds, child nutrition programs, Medicaid reimbursements, and other taxpayer-supported initiatives.
Critics have argued that repeated scandals point to systemic oversight failures and insufficient safeguards designed to prevent fraud before millions of dollars are lost. Supporters of stronger enforcement say cases like this demonstrate why aggressive auditing, criminal investigations, and prosecution efforts remain necessary.
For now, both defendants remain in federal custody as the judicial process moves forward. As with all criminal cases, the allegations contained in the charging documents must still be proven in court.
