FBI agents on Thursday raided two autism centers in Minnesota in connection with an investigation into suspected Medicaid fraud.

A 5 EYEWITNESS NEWS camera was there as FBI agents went through Smart Therapy Center on Nicollet Avenue in Minneapolis. A search warrant application submitted by FBI Special Agent Kurt Beulke indicates agents also searched Star Autism Center in St. Cloud.

The affidavit outlines a pattern of alleged fraudulent billing and claims these businesses sought hundreds of thousands of dollars in reimbursements through Early Intensive Developmental and Behavioral Intervention (EIDBI), a state-funded program designed to offer medical services to youths with autism spectrum disorder. Providers can bill for services through health care plans such as Medical Assistance — Minnesota’s version of Medicaid — or MinnesotaCare.

Federal investigators say they found “substantial evidence” that Smart Therapy Center and Star Autism Center submitted fraudulent claims for services that either weren’t provided or weren’t covered under the EIDBI program.

The search warrant application asks for the seizure of documents and computers that may pertain to the EIDBI program.

The Minnesota Department of Human Services, which administers the EIDBI program, confirmed it has had open investigations into both Smart Therapy Center and Star Autism Center for some time.

“Because of concerns about the integrity of autism services, we have stepped up our oversight and are conducting a thorough audit of the program,” DHS Commissioner Jodi Harpstead said in a statement. “DHS is in the process of visiting every single site that participates in this program. We are digging further into cases where we note concerns and will conduct formal investigations if and where needed.”

5 EYEWITNESS NEWS has reached out to Smart Therapy Center and Star Autism Center for comment and is awaiting a response.

FBI investigators likened a recent explosion in EIDBI claims — nearing $400 million in 2023 and 2024 — to the growth of fraudulent claims by Federal Child Nutrition Program sponsors such as Feeding Our Future. In all of 2017, there were 15,720 EIDBI-related claims; by 2023, yearly claims had surpassed 1 million.

Feeding Our Future, the now-defunct Minneapolis nonprofit, is accused of defrauding $250 million in taxpayer money. Charges were filed against 70 defendants, of whom 22 have pleaded guilty and five others have been convicted at trial.

According to the search warrant application, “at least a dozen” people charged in the Feeding Our Future scheme owned, associated with or benefited from autism clinics that received EIDBI reimbursements.

Beulke noted that Smart Therapy Center had even registered as a meal site under the sponsorship of Feeding Our Future, claiming to serve hundreds of meals a day.

Qamar Hassan, the owner of Smart Therapy’s purported vendor, S&S Catering, admitted as part of a plea deal that these claims were “grossly inflated.” However, Smart Therapy’s president and CEO, Asha Hassan, was not among the defendants charged in the Feeding Our Future scheme.

“It’s challenging,” Jenny Lillehei, assistant director of applied behavior analysis (ABA) for Fraser, said. 

Fraser has been a leading autism service center for nearly a century. Lillehei says that Medicaid funding is crucial for their work, making the news of possible fraud in the industry troubling to hear,” Lillehei added. 

She says families should branch out if they’re connected to the providers under investigation or others they feel aren’t a good fit. 

“Continuing to know your family, know what’s important to you, advocate for your own rights. Be comfortable leaving an organization or a service provider and finding something that’s a better fit for your family,” Lillehei said. 

As of Thursday, no formal charges had been filed in the investigation.

You can view the search warrant in full below: