Federal Agents Search Minnesota Firms in Medicaid Fraud Probe
WHO:
5 EYEWITNESS NEWS - The St. Cloud fraud announcement included Treasury Secretary Scott Bessent, FBI Director Kash Patel, Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz, and Federal Trade Commission Chairman Andrew Ferguson.
NY Post - FBI Director Kash Patel and Treasury Secretary Scott Bessent traveled to Minnesota to announce 17 local anti-fraud raids.
Fox News - Federal agents raided Minnesota autism service providers.
FOX 9 Minneapolis-St. Paul - Attorney General Keith Ellison’s office confirmed that Iska Inc. and Bright Horizon Therapy Center were under investigation for suspected fraud.
FOX 9 Minneapolis-St. Paul - Agencies involved included the FBI, the Department of Health and Human Services Office of Inspector General, U.S. Postal Inspectors, IRS criminal investigators, the Minnesota Bureau of Criminal Apprehension, and the Minnesota Medicaid Fraud Control Unit.
MPR News - Ellison’s office said its Medicaid Fraud Control Unit executed search warrants at the two businesses.
MPR News - FBI Minneapolis spokesperson Matt Vogel confirmed the involvement of the Office of Inspector General, IRS criminal investigators, and the Bureau of Criminal Apprehension. Vogel said, “This is an active investigation, and no further details are available at this time.”
WHAT:
5 EYEWITNESS NEWS - Patel said authorities executed 17 search warrants, including three at child care centers; federal officials said the searches led to 26 indictments and four arrests.
5 EYEWITNESS NEWS - Patel identified four defendants and alleged intended losses: Feisal Elmi of Aspen Associates, 11 health care fraud counts involving $8 million; Jama Mohamod of American Home Health Care, six counts involving $3.27 million; Faiza Ahmed of Home Sweet Home, eight counts involving $10 million; and Habiba Mohamed of Smart Therapy, one conspiracy-to-defraud-the-United-States count involving nearly $20 million.
NY Post - Four people were arrested in raids over alleged theft of $41 million from federal programs in Minnesota.
Fox News - Federal agents raided multiple Minnesota autism service providers as Medicaid fraud investigations intensified across the state.
FOX 9 Minneapolis-St. Paul - Federal and state authorities raided two Twin Cities autism service providers as part of fraud investigations; federal officials called the activity “court-authorized investigative activity.”
FOX 9 Minneapolis-St. Paul - Iska was disenrolled during the state’s revalidation effort. Records cited a failed site visit and showed that the business had not appealed the decision by early June.
FOX 9 Minneapolis-St. Paul - The Minnesota Department of Human Services said it was tracking the law-enforcement activity and stated: “When we see evidence of fraud, we shut off money and refer suspected criminals to law enforcement.”
MPR News - The businesses provide autism services and other Medicaid-funded services.
WHERE:
5 EYEWITNESS NEWS - Rochester police confirmed they assisted the FBI with multiple search warrants in southern Minnesota.
Fox News - Raids took place in St. Louis Park and Edina, Minnesota.
FOX 9 Minneapolis-St. Paul - The businesses were Iska Inc. in St. Louis Park and Bright Horizon Therapy Center in Edina; FOX 9 crews saw investigators at a St. Louis Park business center where Iska is located.
MPR News - Authorities carried out investigative activity at several sites in Rochester and the Twin Cities metro area; search warrants were executed at Iska Inc. and Bright Horizon Therapy.
WHEN:
FOX 9 Minneapolis-St. Paul - Records showed Iska was disenrolled in May; the article did not specify the year.
WHY:
NY Post - Bessent criticized Gov. Tim Walz as “woefully negligent” in protecting public funds.
FOX 9 Minneapolis-St. Paul - Both businesses were being investigated for suspected fraud as part of Medicaid fraud investigations.
FOX 9 Minneapolis-St. Paul - The Minnesota Department of Human Services said collaboration among local, state, and federal authorities is essential to fighting fraud and stopping criminal schemes.
HOW:
5 EYEWITNESS NEWS - Federal officials said the announcement was part of the Trump administration’s “War on Fraud” and the vice president’s fraud task force.
NY Post - Bessent said, “We’re kicking butt.”
FOX 9 Minneapolis-St. Paul - Authorities conducted court-authorized investigative activity; Ellison’s office said the Medicaid Fraud Control Unit executed search warrants.
FOX 9 Minneapolis-St. Paul - The White House announced Vice President JD Vance would appear in St. Cloud to make a fraud announcement; it was unclear whether the raids were directly connected.
(UPDATED October 31, 2026 09:58 UTC)
Federal and state agents raided Minnesota autism service providers amid expanding Medicaid fraud investigations. Authorities executed 17 search warrants, leading to 26 indictments and four arrests. Officials allege fraud involving $41 million in federal program funds across Minnesota.
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(UPDATED October 30, 2026 22:59 UTC)
Federal and state agents raided Minnesota autism providers, investigating suspected Medicaid fraud at two businesses. FBI Director Kash Patel and Treasury Secretary Scott Bessent announced seventeen local anti-fraud raids. Four people were arrested over alleged theft of forty-one million dollars from federal programs.
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(UPDATED October 30, 2026 13:07 UTC)
Federal agents raided two Minnesota autism service providers amid suspected Medicaid fraud investigations. Authorities searched Iska in St. Louis Park and Bright Horizon in Edina. State and federal agencies are involved; officials describe the investigation as active.