MINNEAPOLIS, MN — The recent guilty plea from a Somali-American business owner sheds light on a healthcare fraud scheme that has raised significant alarm bells across Minnesota. Asha Farhan Hassan admitted to defrauding taxpayers out of over $14 million through fraudulent Medicaid and child nutrition claims. This revelation has sparked a torrent of criticism on social media, with one user declaring, “A Somali woman just ADMITTED to stealing $14 MILLION… Tim Walz NEEDS TO RESIGN!!” The sharp dissatisfaction reflects broader frustrations over governmental oversight in the state.
Hassan’s case is a troubling example of the vulnerabilities in public assistance programs. She operated Smart Therapy LLC and manipulated the system by submitting false claims for services. “There was no child that Smart Therapy was not able to get qualified for autism services,” stated the U.S. Attorney’s Office, emphasizing how blatantly the fraud was perpetrated. It appears Hassan’s operation extended well beyond ethical boundaries, seeking to exploit a system designed for the vulnerable.
The extent of the fraud unfolded between 2020 and 2022, during which Smart Therapy claimed over $14 million, despite not meeting the basic requirements for service delivery. Hassan hired unlicensed and inexperienced staff, often turning to relatives for assistance, and implemented a cash kickback scheme for parents—paying between $300 to $1,500 to enroll their children in the program. This corruption undermines the integrity of essential services meant to support children and families in need.
Hassan’s fraudulent activities didn’t stop with Medicaid. She allegedly manipulated claims to the federal Feeding Our Future program, falsely asserting that nearly 200,000 meals were served to children. This deceit resulted in an extra $465,000 in federal funding for meals that were likely never delivered. Such mismanagement of taxpayer money intensifies concerns over how governmental programs can sometimes fail those they aim to assist.
A deeper investigation led by the FBI and other federal entities revealed further troubling actions by Hassan. Not only did she devise methods to launder the illicit gains, but she also made substantial real estate purchases in Kenya. As Acting U.S. Attorney Joseph H. Thompson noted, “these massive fraud schemes form a web that has stolen billions of dollars in taxpayer money.” His comments highlight a significant crisis in protecting vital safety-net programs from exploitation.
The repercussions of Hassan’s fraudulent conduct extend beyond mere financial loss. Families dependent on autism services have been subjected to betrayal, witnessing their trust in these safety nets severely compromised. Many may have lost access to critical developmental support, relying on unqualified personnel rather than trained professionals. Such outcomes highlight the dangerous potential of unchecked systems and the harm they can inflict on vulnerable communities.
Minnesota’s increasing problem with fraud in safety programs has come under scrutiny, particularly under Governor Tim Walz’s administration. Critics cite a pattern of inadequate oversight, exacerbated by other high-profile fraud cases such as the Feeding Our Future scandal—an incident involving over 60 federal indictments and a staggering $250 million in misappropriated pandemic relief funds. Hassan’s case forms part of a broader narrative that casts doubt on the state’s ability to safeguard taxpayer resources.
The Medicaid Early Intensive Developmental and Behavioral Intervention (EIDBI) program, originally established to aid children with autism, has also been scrutinized. Payments dramatically increased from $1.7 million in 2017 to nearly $400 million by 2023-2024, raising concerns among state investigators. In response, the Minnesota Department of Human Services (DHS) began its own audit, leading to halted payments to Smart Therapy following the emergence of damning evidence.
Following the scandal, the DHS is intensifying compliance checks and site reviews across autism service locations. Commissioner Shireen Gandhi remarked that the fraud schemes require a “sophisticated, coordinated response” from authorities. While these efforts represent necessary actions, critics argue they come too late for many families affected by the misconduct.
Interestingly, Hassan’s attorney attempted to paint her in a sympathetic light, suggesting her initial intentions were good. However, her acknowledgment of wrongdoing indicates a troubling moral decline. As Hassan cooperates with investigators, she faces serious repercussions, including a potential maximum sentence of 20 years for wire fraud.
As the investigations continue, the implications are immense. The full scope of the assets linked to Hassan’s scheme, including international real estate purchases, remains under examination. With lingering questions over asset recovery, the incident serves as a lesson on the flaws inherent in taxpayer-funded programs and the urgent need for vigilant oversight.
The fallout from Asha Hassan’s case occurs against a backdrop of hope for struggling families who rely on federal support services. It has become a glaring example of how good intentions can become perverted by the allure of financial gain, undermining the integrity of essential public programs. This case amplifies the call for reforms to prevent such exploitation in the future and to restore faith in services designed to uplift those in need.
"*" indicates required fields
