Federal authorities announced criminal charges Thursday against 15 defendants in Minnesota accused of participating in health care fraud schemes involving more than $90 million in intended losses, including what prosecutors described as the largest Medicaid autism fraud case ever charged by the Justice Department.
The cases involve alleged fraud tied to multiple Medicaid-funded programs, including services for children with autism, housing assistance, disability support, and child care subsidies.
The Justice Department said the investigation also prompted a nationwide expansion of its Health Care Fraud Section, including funding for 15 new trial attorney positions focused on Medicaid fraud enforcement.
“Today, we are holding scammers accountable who ripped off the American taxpayer and harmed those deserving legitimate assistance from these programs,” Acting Attorney General Todd Blanche said in a statement. “These alleged con artists stole taxpayer dollars while providing substandard care for children and abandoning at least one Medicaid recipient as they passed away.”
Federal officials said the takedown includes the two largest Medicaid fraud cases ever filed in Minnesota federal court and several first-of-their-kind prosecutions involving state Medicaid programs.
Assistant Attorney General Colin M. McDonald said data showed a significant increase in Medicaid fraud nationwide.
“The fraud here in Minnesota is shocking,” McDonald said during a Minneapolis press conference, NBC News reported. “This is not the end of our work.”
Health and Human Services Secretary Robert F. Kennedy Jr. called the investigation “the largest autism fraud bust in American history,” per Politico.
According to prosecutors, two defendants were charged in a $46.6 million fraud scheme involving Minnesota’s Early Intensive Developmental and Behavioral Intervention program, which provides services to children and young adults with autism spectrum disorder.
Authorities allege the defendants paid kickbacks to parents, diagnosed children with autism “regardless of medical necessity,” and billed Medicaid for services that were never provided.
“As alleged, the defendants not only attempted to steal public healthcare funds paid for by hardworking American taxpayers – but stole critical resources from families who truly needed them,” FBI Director Kash Patel said in a news release.
Federal prosecutors also announced charges involving Minnesota’s Integrated Community Supports program, which helps people with disabilities live independently. One defendant allegedly billed Medicaid $1.4 million for services that were either not provided or misrepresented.
According to prosecutors, one Medicaid recipient requiring round-the-clock care was later found dead after allegedly not receiving the billed services.
Additional charges stem from alleged fraud involving Minnesota’s Individualized Home Supports program. Prosecutors accused two defendants of orchestrating a $22 million scheme by secretly acquiring more than 20 residential properties and using Medicaid beneficiary information to bill for services that were not delivered as represented.
Authorities said the defendants used proceeds from the alleged fraud to purchase real estate, luxury vehicles, and expensive jewelry.
Eight other defendants were charged in connection with alleged fraud involving Minnesota’s Housing Stabilization Services program, which was created to help seniors and people with disabilities secure housing. Prosecutors said the program paid out more than $15.7 million in fraudulent claims.
Officials said some defendants traveled from Pennsylvania to Minnesota to participate in the schemes, describing the activity as “fraud tourism.”
Minnesota shut down the Housing Stabilization Services program in October 2025 because of fraud concerns.
The Justice Department also charged two defendants in separate cases involving child care assistance programs. One case involved an alleged $425,000 fraud tied to a state-funded teacher compensation program, while another involved a $4.6 million scheme targeting a federally funded child care assistance program.
“These schemes did more than steal taxpayer dollars — they robbed children with autism, adults with disabilities, and other at-risk citizens of the essential care they rely on,” HHS Inspector General T. March Bell said in a news release.
Federal officials said the crackdown reflects a broader effort to expand Medicaid fraud enforcement nationwide. The Justice Department announced the addition of Minnesota to its Midwest Health Care Fraud Strike Force, previously centered in Chicago and Detroit.
The newly funded prosecutors are expected to support investigations in Minnesota and other states, including California, Florida, New York, and Texas.
