Woman Charged in $14M Autism Fraud Scheme

Federal Prosecutors Charge Woman in $14 Million Autism Treatment Fraud Scheme

Federal prosecutors have charged a 28-year-old woman with defrauding a Minnesota autism treatment program out of $14 million as part of a large-scale fraud scheme. The case also involves her participation in the Feeding Our Future food-aid fraud conspiracy, which has been linked to millions of dollars in stolen taxpayer funds.

The U.S. District Court filings allege that Asha Farhan Hassan, owner of Smart Therapy Center LLC in Minneapolis, enrolled her company in Minnesota’s Early Intensive Developmental and Behavioral Intervention (EIDBI) program. This program is funded by state and federal money to support children under 21 with autism spectrum disorder. According to the charges, Hassan submitted fraudulent claims for autism services that were often not provided, resulting in over $14 million in reimbursements from the Minnesota Department of Human Services and UCare insurance carrier.

Hassan’s alleged actions were part of a broader network of fraud that involved multiple programs. She also participated in the Feeding Our Future food-aid program, which prosecutors say was at the center of a $250 million fraud case. During the same time period, she submitted false reimbursement requests for nearly 200,000 meals served to children through the federal child nutrition program. She sought $465,000 in reimbursements under the sponsorship of Feeding Our Future, which had its CEO convicted in March.

Expanding Fraud Schemes and Legal Consequences

This case marks the first time someone has been charged in the ongoing investigation into autism providers, signaling a growing concern about health care fraud in Minnesota. Recent charges also include eight individuals accused of billing the Housing Stabilization Services program for unprovided services, with more charges expected.

Acting U.S. Attorney Joe Thompson emphasized that these fraud schemes are not isolated incidents. “From Feeding Our Future to Housing Stabilization Services and now Autism Services, these massive fraud schemes form a web that has stolen billions of dollars in taxpayer money,” he said in a statement. He added that each case brought to court exposes another strand of this network, highlighting the complexity and scale of the fraud.

According to court documents, Hassan and her partners received more than $14 million in reimbursements from 2019 to late 2024. They allegedly split the proceeds among themselves, with some funds sent abroad for real estate in Kenya. Additionally, they recruited families in the Somali community to enroll their children in Smart Therapy, even when the children did not have autism. Parents were given monthly kickbacks ranging from $300 to $1,500 to enroll their children, with some families threatened to take their children elsewhere if they did not receive higher payments.

Exploiting Vulnerable Communities

Prosecutors stated that Smart Therapy often employed Hassan’s 18- and 19-year-old relatives as “behavioral technicians” without formal education or training in autism treatment. The center also billed the state for services rendered by providers who were either outside the country or not on the clinic’s payroll. Transportation services were also fraudulently billed for drivers who dropped off and picked up children, despite being on the Smart Therapy payroll.

These tactics were part of a larger strategy to maximize profits while minimizing costs. The fraud scheme extended beyond the EIDBI program, with Hassan submitting false claims for meals through the federal child nutrition program. The connection between the Feeding Our Future case and the autism provider fraud led to a federal raid on Smart Therapy Center and another provider in December.

Increasing Scrutiny and Response from Authorities

Minnesota’s Department of Human Services (DHS) opened an investigation into Smart Therapy in August 2024 and halted payments after a law enforcement search. The DHS Office of Inspector General currently has 84 open cases involving autism providers and 24 active payment withholds. Commissioner Shireen Gandhi noted that increased investigatory oversight has been critical in uncovering complex fraud schemes.

UCare, the insurance carrier involved, stated that it has mechanisms in place to detect and respond to fraud. When notified that DHS has stopped payments, UCare suspends payments to providers. However, the carrier declined to discuss specific details about the alleged fraudulent claims by Smart Therapy.

A Growing Concern for State Programs

Thompson described the fraud cases as a “wholesale attack” on Minnesota’s social service programs, emphasizing that the system of trust has been undermined. He noted that the number of autism providers in the state grew significantly from 41 in 2018 to 328 in 2023, along with a dramatic increase in spending by Feeding Our Future, from $3.4 million in 2019 to nearly $200 million in 2021.

Hassan’s attorney, Ryan Pacyga, stated that she intends to plead guilty in the near future, calling it her best path forward. He explained that while Hassan started her businesses with genuine intentions, the fraud began to occur over time. Pacyga added that she is working to make things right with the U.S. Attorney’s Office.