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Minnesota Somali Abdifatah Yusuf was found guilty in August 2025 of bilking the Medicaid program out of over $7.2 million through his personal care assistant (PCA) agency, Promise Health Services, LLC.

Reports also suggest that some of the money stolen through various welfare fraud schemes in Minnesota may have been routed to the terror group al-Shabaab in Somalia.

In November 2025, a Hennepin County judge controversially overturned the jury’s guilty verdict against Yusuf, citing insufficient direct evidence that he knew fraud was occurring. The Minnesota Attorney General’s office has appealed this ruling.

Details of the case and wider fraud
The Scheme: Abdifatah Yusuf’s agency, Promise Health Services, LLC, claimed to provide millions in Home and Community Based Services (HCBS) to Medicaid recipients but lacked a physical office and operated out of a mailbox for years.
Jury Verdict: In August 2025, a jury found Yusuf guilty of six counts of aiding and abetting theft by swindle (over $35,000) and found aggravating factors to support an enhanced sentence.

Judge’s Decision: In November 2025, Hennepin County Judge Sarah West dismissed the jury’s verdict against Yusuf, arguing there was not enough direct evidence linking him to the fraudulent activity within his company.

Terrorist Funding Allegations: According to reports, former federal counter-terrorism officials believe some stolen funds were sent to Somalia via informal transfer networks known as hawalas. They allege that al-Shabaab routinely takes a share of these funds.

Wider Context: Federal prosecutors in Minnesota are investigating widespread welfare fraud in the Somali community, including other fraud cases involving housing stabilization and pandemic child nutrition programs. Sources suggest Minnesota taxpayers could be one of the largest funders of al-Shabaab due to these schemes.

Political Reaction: Minnesota GOP lawmakers have pushed for a federal fraud investigation and alleged a terrorist link. Critics claim Minnesota leaders have been slow to address the issue, fearing backlash from the state’s Somali-American voting block.

Other Related Cases: The Yusuf case is one of several recent fraud cases. In August 2023, the Minnesota Attorney General’s Office charged five people with $9.5 million in Medicaid fraud involving a PCA company called MN Professional.