MINNEAPOLIS (FOX 9) – FBI agents raided autism treatment centers in Minneapolis and St. Cloud Thursday morning. The raids could be part of a broader investigation, with search warrants indicating that the raids are part of an investigation into possible Medicaid fraud.

What we know

At 9 a.m., agents raided a Minneapolis autism center called “Smart Therapy,” located in a storefront. A second raid occurred at “Star Autism” in St. Cloud. Both centers are suspected of massive fraud involving state funds.

A 54-page federal search warrant, unsealed at the same time as the raids, outlines an investigation into wire fraud, healthcare fraud, and conspiracy. It states that Smart Therapy received nearly $14 million in state funds since 2019, while Star Autism has received more than $6 million since 2020. The document says, “many of these claims appear fraudulent.”

Context

This investigation grew out of the Feeding Our Future case, which involved hundreds of millions of dollars in fraudulent meal claims. The FBI says they noticed a connection between the schemes. “At least a dozen of the defendants charged for their role in the Feeding Our Future scheme owned, received money from, or were associated with autism clinics and other healthcare companies that received state funds,” the warrant says.

Witnesses told investigators the owners of these clinics recruited clients by talking to parents they knew, even going door to door. The warrant alleges some parents were paid to bring their children to the clinics.

In some cases, investigators believe children weren’t even present. Medicaid was allegedly billed for services when children were at school or, in one case, at home recovering from surgery. The warrant also alleges bills were submitted for work by people who didn’t work at the centers—or by medical providers who were not in the country.

Larger investigation

The warrant suggests these raids are just part of a broader investigation, as dozens of similar autism centers opened around the same time. Many of them are suspected of submitting fraudulent claims.