Federal authorities have arrested two Minnesota residents for allegedly executing a massive healthcare fraud scheme that drained more than $21 million from the American taxpayer over a four-year period. The United States Department of Homeland Security announced the arrests following an operation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Shamso Ahmed Hassan and Hanaan Mursal Yusuf were taken into custody on May 21 by HSI St. Paul agents. Both individuals face serious federal indictments, including conspiracy to commit health care fraud, eight counts of health care fraud, and two counts of money laundering. The suspects, who are both United States citizens, will remain in federal custody as their judicial proceedings move forward.
According to federal records, the multi-million-dollar operation centered around two local entities: Smart Therapy Center LLC and Star Autism Center LLC. Hassan, a naturalized citizen, acted as a beneficial owner for both operations.
She was enrolled as an authorized service provider under the Minnesota Early Intensive Development and Behavioral Intervention (EIDBI) Program and actively served as an employee and the lead biller for Smart Therapy Center LLC, a position that gave her direct control over submitting financial claims to Medicaid.
Investigators state that the defendants leveraged these positions to systematically defraud the healthcare benefit program. By submitting a continuous stream of false and fraudulent claims to Medicaid, the pair managed to siphon approximately $21.1 million. The illicit operation began in May 2020 during the height of the COVID-19 pandemic and continued entirely unchecked until December 2024.
The core investigation into the scheme is being spearheaded by the Federal Bureau of Investigation, with active field assistance provided by HSI. Federal officials emphasized that this case is part of a broader, ongoing crackdown on systemic financial exploitation within the region’s healthcare networks.
“These Minnesota residents have been accused of stealing more than $21 million from the American taxpayer,” said Acting Assistant Secretary Lauren Bis in an official statement. “They now face charges of conspiracy to commit health care fraud, EIGHT counts of health care fraud, and TWO counts of money laundering. 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. Under Secretary Mullin, we will end the defrauding of the American people.”
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