Medicaid claims for autism intervention in Minnesota surged from more than $600,000 in 2018 to more than $400 million by 2025, according to the Department of Justice. This rapid increase in spending serves as the backdrop for a law enforcement sweep on Thursday, as federal and state agents conducted court-authorized raids at multiple locations across the Twin Cities and Rochester.
The operations targeted autism service providers suspected of fraud. The office of Attorney General Keith Ellison identified two of the businesses as Bright Horizon Therapy Center in Edina and Iska Inc. in St. Louis Park. State data reviewed by the Minnesota Star Tribune indicates that Iska Inc., a participant in the state’s Early Intensive Developmental and Behavioral Intervention program, received more than $16.7 million in Medicaid payments between 2018 and 2025.
Multi-Agency Enforcement
The FBI confirmed the raids involved a broad coalition of investigators, including:
- IRS criminal investigators
- The Department of Health and Human Services Office of Inspector General
- U.S. Postal Inspectors
- The Minnesota Bureau of Criminal Apprehension
- The Minnesota Medicaid Fraud Control Unit
While federal officials described the activity as “court-authorized,” FBI Minneapolis spokesperson Matt Vogel stated that no further details are available because it is an active investigation.
Pattern of Fraud Investigations
These raids follow a series of recent actions targeting taxpayer-funded programs in Minnesota. In April, investigators executed 22 search warrants at childcare businesses and autism service providers. The Justice Department also announced charges in May against 15 defendants involved in health care fraud schemes with intended losses exceeding $90 million, which included a specific $46.6 million scheme targeting the state's autism intervention program.
The Minnesota Department of Human Services stated that collaboration between authorities is essential to stopping criminal schemes, noting, When we see evidence of fraud, we shut off money and refer suspected criminals to law enforcement.
Iska Inc. Disenrolled After Failed State Site Visit
Records obtained by FOX 9 show that Iska Inc. was disenrolled during a state revalidation effort in May due to a failed site visit; the business had not appealed that decision as of early June.
The law enforcement activity coincides with a planned visit to St. Cloud by Vice President JD Vance and members of the White House Task Force to Eliminate Fraud for a fraud announcement, though it remains unclear if the raids are directly connected to that visit.
