FBI agents conducted raids Thursday morning at autism treatment centers in Minneapolis and St. Cloud as part of a widening investigation into alleged Medicaid fraud.
The targeted locations included “Smart Therapy” in Minneapolis and “Star Autism” in St. Cloud. Both centers are accused of submitting fraudulent claims involving state funds.
A recently unsealed 54-page federal search warrant reveals that Smart Therapy has received nearly $14 million in state funding since 2019, while Star Autism has received more than $6 million since 2020. Investigators stated, “many of these claims appear fraudulent,” and the case involves allegations of wire fraud, healthcare fraud, and conspiracy.
The investigation stems from the larger Feeding Our Future scandal, which exposed hundreds of millions of dollars in fraudulent claims tied to meal programs. According to the warrant, at least a dozen individuals charged in the Feeding Our Future case had financial or operational ties to autism clinics and other healthcare companies that also received state funds.
Witnesses alleged that clinic owners solicited clients by recruiting parents directly, even going door-to-door in some cases. Investigators suspect some parents were paid to enroll their children, with services being billed even when children were not present. For example, Medicaid claims were reportedly submitted for children who were in school, at home recovering from surgery, or for providers who either didn’t work at the clinics or were not in the country.
The investigation highlights systemic misuse of state funds, with authorities seeking to uncover the full extent of fraudulent activities connected to these centers.
