MINNEAPOLIS — Four people have been charged in federal Medicaid fraud cases involving tens of millions of dollars in allegedly fraudulent claims for services intended to help Minnesotans with disabilities.

The cases were highlighted Friday as five senior Trump administration officials gathered in St. Cloud to tout the White House’s efforts to combat fraud, just days before an election in which Minnesota Republican candidates have made the issue a central campaign theme.

Treasury Secretary Scott Bessent, FBI Director Kash Patel, Centers for Medicare and Medicaid Services Administrator Mehmet Oz, Federal Trade Commission Chairman Andrew Ferguson and Assistant Attorney General Colin McDonald spoke at the event, portraying the Trump administration as taking a more aggressive approach to fraud enforcement.

Patel identified four defendants accused of attempting to defraud Medicaid of more than $41 million and said there were 17 search warrants executed in Minnesota on Thursday.

McDonald also pointed to recent convictions and prison sentences, saying 14 fraud defendants in Minnesota had been sentenced to a combined 988 months in prison over roughly the past 115 days.

“Ladies and gentlemen, that is the new normal, and fraudsters here should know it,” McDonald said.

Ferguson described the administration’s efforts as a fight against “fraudsters, pirates and gangsters,” arguing that widespread fraud undermines public trust in government programs intended to help vulnerable Americans.

Bessent also highlighted a centralized fraud reporting portal and a $25 million whistleblower incentive program, saying people who provide information leading to convictions or enforcement actions may qualify for rewards of $30,000.

Three of the defendants identified by Patel made their initial court appearances Thursday. More indictments are expected to be unsealed or filed.

The three indicted defendants allegedly billed for an inflated number of hours or services that weren’t provided, concealed false Medicaid claims and diverted proceeds to benefit themselves and others, according to court documents.

Federal and state authorities also searched several other sites in Minnesota on Thursday, including two autism centers in Edina and St. Louis Park that each received around $17 million in Medicaid funds since 2018. Charges related to those searches have yet to be filed.

Recent indictments include:

Faiza Osman Ahmed received $8 million for Medicaid services she provided through her business Home Sweet Home Health Care, “a significant part of which were false and fraudulent,” according to this week’s indictment.

Patel said Friday that Ahmed faces eight counts of health care fraud involving approximately $10 million in intended losses.

The company submitted Medicaid claims for three services: personal care assistance, night supervision and individualized home supports. Those programs generally help people with disabilities live more independently in their homes and the community rather than institutions.

Ahmed enrolled the business with Minnesota’s Department of Human Services in 2016. She billed Medicaid starting around November 2021 through March 2026, according to the indictment.

Jama Yusuf Mohamod created American Home Health Care LLC around April 2016 and enrolled in the state’s Integrated Community Supports (ICS) program in October 2022.

Patel said Mohamod faces six counts of health care fraud involving approximately $3.27 million in intended losses.

People getting help through ICS are supposed to receive one-on-one assistance with things like cooking, budgeting and setting up health care appointments. The service also aims to help people with disabilities live more independently and avoid more institutional settings.

Mohamod billed for and received about $3.2 million for ICS services over several years, according to the grand jury’s charges.

During that time, he allegedly submitted claims for services that were not provided or for inflated hours. The company also failed to document services as required, according to the indictment filed this week.

One client, for example, was supposed to get eight hours of in-person care and two hours of remote help per day. Mohamod allegedly submitted claims for 417 days of service to that person but did not have documentation to support any services on 169 of those days. The company billed for more than $55,500 on days where there was not documentation, according to the grand jury charges.

The business also rented apartments in Minnetonka and St. Paul and subleased the units to Medicaid recipients for rates below fair market value, which violates Medicaid rules, the indictment states.

Both ICS providers and recipients have raised concerns about the program’s flawed design and said it did not have clear, consistent rules or enforcement, making it ripe for fraud. Some providers suggested lawmakers scrap and overhaul the program this year.

Feisal Mohamed Elmi was indicted by a grand jury last week with defrauding a state program intended to help young people with autism and their families.

Patel said Elmi faces 11 counts of health care fraud involving approximately $8 million in intended losses.

Elmi reportedly formed Aspen Associates LLC in March 2014. Starting around October 2020 through January 2026, Elmi aimed to defraud Medicaid through the state’s early autism intervention program, according to the indictment.

Elmi and others sought about $7.5 million though Aspen, though they were only reimbursed for around $2.8 million, according to the charges.

Elmi and others allegedly sought payment for services that were not provided. The charges also state they submitted claims for services purportedly provided in the U.S. when the provider and beneficiary were not in the country.

Staff at Aspen also sent in Medicaid reimbursement claims that were supposed to be authorized by a qualified service provider, such as a developmental and behavioral pediatrician, but were not, according to the indictment.

A fourth defendant, Habiba Mohamed, was charged Thursday with conspiracy to defraud the United States in connection with an alleged scheme involving Smart Therapy Center LLC, a Minnesota business that provided services to children with autism. She has not made a first appearance.

Mohamed worked as the center’s clinical director from approximately September 2022 through September 2024, overseeing training, hiring and firing, and dealing with outside vendors, according to the charging document. She also held a 10% ownership interest in the business.

Federal prosecutors allege that Mohamed and others paid parents between $300 and $1,500 per month for enrolling their Medicaid-eligible children at Smart Therapy. The payments were disguised through checks issued to family members and employees, who then provided cash to parents.

The company allegedly submitted approximately $19.8 million in fraudulent Medicaid claims over two years, receiving about $7.7 million in reimbursements. Prosecutors say the claims included services that were never provided or were not medically necessary.

The charging document also alleges that Mohamed deposited two $15,000 checks from Smart Therapy into her personal bank account in August 2023 and withdrew a total of $12,500 in cash to pay illegal kickbacks to parents.

Several people have been charged with abusing Minnesota’s Early Intensive Developmental and Behavioral Intervention benefit, and state officials added a number of guardrails in recent years to try to prevent fraud in the program. Some of the measures have been criticized by providers in the field, who say the state has made it difficult to stay in business and is hurting families that need the help.

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