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Two Minnesota autism centers raided by FBI, accused of filing fraudulent claims

By
Esme Murphy
Esme Murphy
Reporter/Anchor
Esme Murphy, a reporter and Sunday morning anchor for WCCO-TV, has been a member of the WCCO-TV staff since December 1990. She is also a weekend talk show host on WCCO Radio. Born and raised in New York City, Esme ventured into reporting after graduating from Harvard University.
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Esme Murphy,
Ubah Ali
Ubah Ali
Reporter
Ubah Ali joined WCCO-TV in September 2023. She makes history in Minnesota as the first Somali-American TV reporter in the Twin Cities.
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Ubah Ali

/ CBS Minnesota

MINNEAPOLIS — A federal search warrant accuses two Minnesota autism treatment centers of submitting fraudulent claims for services that were never provided.

The FBI and state investigators raided the Smart Therapy Center's business office in Minneapolis and the Star Autism Center's office in St. Cloud on Thursday morning.

According to the federal search warrant, the investigation into the autism centers is a direct outgrowth of the investigation into the $240 million Feeding Our Future scandal that has resulted in 70 indictments and almost 30 guilty pleas or convictions.

The Minnesota Department of Human Services said this summer that 15 Minnesota autism centers were under investigation for fraud. It is also investigating the two centers raided on Thursday.

WCCO reached out to Smart Therapy Center and Star Autism but they did not respond. The FBI and the U.S. attorney are not commenting.

In this case, the alleged scheme boils down to charging Medicaid millions for care they didn't provide.

Since 2017, Medicaid reimbursement claims in Minnesota skyrocketed from just under $2 million to more than $250 million.

The latest allegations are a major fear for Ellie Wilson, who serves as the executive director of the Autism Society of Minnesota.

"Insurance is driving what providers are providing as opposed to what patients need," Wilson said. "What we cannot afford is to take a step backward."

According to the search warrant, "many of the kids receiving [autism] services at Smart Therapy did not appear to be autistic."

The warrant alleges Smart Therapy Center hired young relatives, "who had no formal education," and "who were usually just on their phones all day."

The search warrant says the owner of Smart Therapy Center recruited new clients by door-knocking.

A whistleblower believes the owner also paid parents who brought their children after seeing parents picking white envelopes.

This story is still developing but is already becoming a hot-button political issue.

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