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FBI raids autism treatment centers in Minneapolis, St. Cloud in fraud case

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FBI raids autism treatment centers in Minneapolis, St. Cloud in fraud case


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.

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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.”

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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.

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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.

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Crime and Public SafetyFeeding Our FutureMinneapolisSt. Cloud



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Minneapolis, MN

Downtown Minneapolis’ Wells Fargo Center sells to trio of investor groups

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Downtown Minneapolis’ Wells Fargo Center sells to trio of investor groups


“Pairing state-of-the-art amenities with timeless design, the Wells Fargo Center is well-positioned to attract tenants seeking a premier building in a dynamic urban environment,” the release said.

The overall office vacancy rate for downtown Minneapolis at the end of the third quarter was 23.4%, up a percentage point from the same quarter a year ago, according to brokerage firm Colliers.

Current vacancies, which are far higher than before the pandemic, are forcing some building owners to sell at significantly discounted prices. In September, a pair of office towers known as the Forum sold for $6.5 million, representing a discount of more than 90% discount from 2019 when the towers sold for nearly $74 million.



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Minneapolis, MN

Biden Pardons 3 MN Prisoners In Largest-Ever Clemency

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Biden Pardons 3 MN Prisoners In Largest-Ever Clemency


MINNESOTA — President Joe Biden on Thursday commuted the sentences of 1,500 Americans who were released from prison and placed on home confinement during the COVID-19 pandemic and pardoned more than three dozen other people, including three from Minnesota.

The sweeping action was the largest act of clemency in a single day and includes 39 pardons for non-violent crimes, including drug offenses, for people who had “turned their lives around,” the White House said.

Those granted clemency had been serving longer sentences than would have been imposed under more recent laws and practices and were placed on home confinement during the pandemic, and are people who have successfully reintegrated into their communities, Biden said. The full list of those granted clemency can be found here.

Individuals from Minnesota who were pardoned include:

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Lashawn Marrvinia Walker – Minneapolis, Minnesota

Lashawn Marrvinia Walker is a 51-year-old woman who pleaded guilty to non-violent drug offenses in her 20s. Ms. Walker received early termination of her probationary sentence for her exemplary probation record. Since then, Ms. Walker has worked in the healthcare field, is an engaged parent, and regularly assists others in her community, including during the holidays when she helps serve dinner at a retirement home. People in her community describe Ms. Walker as caring, good-hearted, and responsible. They also note her willingness to meaningfully help others.

Kelsie Lynn Becklin – Falcon Heights, Minnesota

Kelsie Lynn Becklin is a 38-year-old woman who pleaded guilty to a non-violent offense at the age of 21. After successfully serving her sentence, Ms. Becklin has furthered her education and recently completed a Ph.D. program. In addition to her graduate program research and academic writing, Ms. Becklin mentors previously incarcerated individuals who also seek to pursue higher education. She is also an active volunteer in her community. Friends and professors attest to her work ethic, dedication, and genuine care for others.

Sarah Jean Carlson – Coon Rapids, Minnesota

Sarah Jean Carlson is a 49-year-old woman who pleaded guilty to a non-violent offense. She received early termination of her probationary sentence. Since then, she has furthered her education and worked in addiction counseling at a faith-based rehabilitation center. Ms. Carlson also volunteers in her local community and at her church. Community members emphasize that Ms. Carlson goes above and beyond to help as many people in crisis as possible.

The commutations are for people who have served out home sentences for at least one year after they were released from prison. Prisons were uniquely bad for spreading the virus and some inmates were released in part to stop the spread. At one point, 1 in 5 prisoners had COVID-19, according to a tally kept by The Associated Press.

Biden, whose single term in the White House is drawing to an end, said in a statement that his administration will review other clemency petitions in the weeks ahead.

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“America was built on the promise of possibility and second chances,” Biden said. “As president, I have the great privilege of extending mercy to people who have demonstrated remorse and rehabilitation, restoring opportunity for Americans to participate in daily life and contribute to their communities, and taking steps to remove sentencing disparities for non-violent offenders, especially those convicted of drug offenses.”

Clemency is the term for the power the president has to pardon, in which a person is relieved of guilt and punishment, or to commute a sentence, which reduces or eliminates the punishment but doesn’t exonerate the wrongdoing.

It is customary for an outgoing president to use the executive power to wipe away records and end prison terms. Even before Thursday’s announcement, Biden has granted more clemency requests than any other president at this point in his first term in recent history, the White House said. The second largest single-day act of clemency was by Barack Obama, with 330, shortly before leaving office in 2017.

Biden’s earlier actions include categorical pardons to people convicted under federal law of simple marijuana violations and former LGBTQ+ service members convicted of private conduct because of their sexual orientation.

Biden continues to face criticism for the blanket pardon earlier this month for his son, Hunter, despite previous pledges not to do so. The president’s action spared the younger Biden a possible prison sentence for federal felony gun and tax convictions.

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Minneapolis, MN

Budget battle in Minneapolis leads to unusual mayoral veto

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Budget battle in Minneapolis leads to unusual mayoral veto


Minneapolis City Council members say they passed a budget that is responsive to its residents.

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“Today we passed a budget that deeply reflects our values,” said council president Elliot Payne.

But the mayor says the budget is problematic and quickly vetoed it.

“It is reckless. It is irresponsible and it is bad for the city of Minneapolis,” said mayor Jacob Frey.

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Frey says the $1.9 billion budget contains $6.5 million in additional spending, while taking money away from clearing and preventing homeless encampments, recruiting and retaining police officers and basic city services like filling potholes and plowing streets.

“This budget cuts needs and adds wants,” said Frey.

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But city council members take issue with the mayor saying they prioritized what he calls “pet projects” by steering money to specific non-profits and neighborhood safety programs.

“It is not a pet project to be responsive to our constituents,” said council member  Aurin Chowdhury.

The mayor signed off on the city council’s lower 6.9 percent property tax increase as opposed to the 8.1 percent increase he initially called for. But city council members say by vetoing their budget, the mayor is playing politics.

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“It is our job as the purse holders of the city to make sure that we are spending your dollars in a reasonable and effective way,” said council member Robin Wonsley.

The city council could vote as early as Thursday whether to override the mayor’s veto or leave it intact.

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Jacob FreyMinneapolis City Council



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