Fraud Allegations Rock Minnesota Autism Centers

Owners of two treatment centers charged with billing state program for services to non-autistic children

Apr. 12, 2026 at 7:51pm

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An extreme close-up of a crumpled medical document or billing form, its edges and textures dramatically illuminated by a harsh flash of light against a dark background, conceptually representing the investigative nature of this fraud case.The alleged fraud at Minnesota autism centers has exposed vulnerabilities in the state's Medicaid-funded services program.Minneapolis Today

Federal prosecutors allege that the owners of two Minnesota autism treatment centers, Star Autism in St. Cloud and Smart Therapy Center in Minneapolis, defrauded the state's Medicaid-funded autism program by enrolling children who did not have autism spectrum disorder and billing the Department of Human Services and insurers for roughly $20 million in services over five years. The owners have pleaded guilty, but it remains unclear how they were able to qualify non-autistic children for autism services, which typically require in-depth evaluations and diagnoses.

Why it matters

The fraud allegations have raised concerns about oversight and safeguards in Minnesota's autism services program, which is a significant part of the state's $9.4 billion in human services spending. The cases have also fueled political attacks on Medicaid and social services, despite few cases being brought to court so far.

The details

Prosecutors say the business owners either "worked with" or forged the signatures of qualified supervising professionals (QSPs) to enroll non-autistic children in autism services. An unnamed witness said Smart Therapy also paid off parents to let their kids receive autism treatment, though no charges have been filed against parents. Experts say diagnosing autism is a rigorous process that would be difficult to bypass, raising questions about how the fraud occurred.

  • In May 2022, an inspector reported Star Autism to state officials following an onsite visit, saying the provider was missing intake documents and personnel files.
  • In December 2024, the FBI searched the two autism centers connected to the criminal activity.

The players

Star Autism

An autism treatment center in St. Cloud, Minnesota that was allegedly involved in the fraud scheme.

Smart Therapy Center

An autism treatment center in Minneapolis, Minnesota that was allegedly involved in the fraud scheme.

Asha Hassan

The owner of Smart Therapy Center who has pleaded guilty to wire fraud.

Abdinajib Hassan Yussuf

The owner of Star Autism who has pleaded guilty.

Dr. Eric Larsson

The executive director of the Lovaas Institute Midwest, an autism research and education group, who commented on the difficulty of bypassing the process to diagnose autism.

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What they’re saying

“Many of the children appeared to have other developmental delays such as speech delays, but not autism.”

— Unnamed source, Behavioral technician at Smart Therapy

What’s next

The judge in the case will decide on Tuesday whether or not to allow Asha Hassan out on bail.

The takeaway

This case highlights ongoing concerns about fraud and lack of oversight in Minnesota's Medicaid-funded autism services program, which has become a political target despite few cases being prosecuted so far. It raises questions about the rigor of the autism diagnosis process and the role of licensed professionals in supervising treatment.