“Somali Autism fraud” refers to a series of large-scale Medicaid fraud schemes in Minnesota where individuals are accused of creating fake autism therapy programs and billing the state for services that were never provided.
Key Details of the Allegations
Scope of the Fraud: Federal and state prosecutors in Minnesota have charged individuals in connection with schemes that allegedly defrauded taxpayers out of millions of dollars (one case alone involved over $14 million).
Modus Operandi: The primary defendant in the first charged case, Somali Asha Farhan Hassan, owner of Smart Therapy LLC, is accused of recruiting families (regardless of whether their children had autism) and paying them monthly kickbacks (ranging from $300 to over $1,500) to enroll their children in a program where therapy sessions often did not occur.
Link to “Feeding Our Future” Scandal: The autism fraud investigation is linked to the separate, massive “Somali Feeding Our Future” child nutrition program fraud, as many individuals involved in the food program scheme also owned or were associated with autism clinics.
Ongoing Investigation: The first charges were filed in September 2025, and officials anticipate more indictments, suggesting a widening investigation that could exceed the scale of the “Feeding Our Future” scandal.
Community Impact: There is concern that thesecases could cast a negative light on many honest providers and families in various communities, who have worked hard to build trust and support services for children with autism.
These fraud cases are seen as a betrayal of vulnerable children and a challenge to the reputation of many legitimate service providers.
“Somali housing fraud” refers to two distinct types of fraudulent schemes that have been prosecuted in Minnesota, primarily involving members of the Somali-American community:
1. Housing Stabilization Services (HSS) Program Fraud
This is a massive, ongoing federal investigation into the abuse of a state-funded Medicaid program.
The Scheme: In 2020, Minnesota launched the HSS program to help people with disabilities or mental illness find and maintain stable housing. Fraudulent providers enrolled Medicaid-eligible individuals, often from addiction treatment centers, and then submitted fake or inflated bills for services that were never provided. The providers fabricated service notes to pass audits and diverted the illicit funds for personal use.
Scope: The program’s costs exploded from an estimated $2.6 million annually to over $100 million by 2024, with most of the increase attributed to fraud. Federal prosecutors describe it as a large-scale attack on Minnesota’s Medicaid system.
Status: As of late 2025, eight individuals have been federally charged, and more charges are expected in what authorities are calling the “first wave” of prosecutions. The Minnesota Department of Human Services (DHS) is working to terminate the program due to its susceptibility to fraud.
The Scheme: A developer named Nolosha Development, LLC, led by Abdiwali Abdullahi, was sued by the Minnesota Attorney General’s office for collecting over a million dollars in $25,000 deposits from more than 160 Somali-American families for a proposed housing community in Lakeville that was never built.
Deceptive Practices: Nolosha allegedly misrepresented crucial details, such as promising large single-family homes, no-interest payment plans (to align with Islamic beliefs on interest), and specific amenities (like a nearby mosque), none of which were true. The land remained undeveloped wetlands.
Status: A judge has issued a default judgment against Nolosha and ordered the company to issue full refunds to its customers. Abdullahi has not cooperated with investigators and has reportedly disappeared. The company is also under federal investigation.
The HSS fraud, in particular, is linked to the larger “Feeding Our Future” scandal, the largest COVID-19 relief fraud case in the United States, as some of the same entities and individuals were involved in both schemes.
Department of Justice (.gov)
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