FBI Director Kash Patel has revealed the total number of individuals indicted in connection with an alleged $90 million healthcare fraud operation in Minnesota.
In a statement posted Thursday, May 21, Patel announced the indictment of 15 individuals, describing the case as one of the largest Medicaid fraud prosecutions ever brought in the district.
He said the charges involve “the two LARGEST Medicaid fraud cases ever charged in this district and first-of-their-kind charges involving 7 additional Medicaid programs.”
According to Patel and the U.S. Department of Justice (DOJ), the defendants are accused of exploiting several Minnesota public healthcare and social assistance programs.
15 charged in alleged $90 million Minnesota Medicaid fraud scheme
These include Medicaid-funded autism services, Housing Stabilization Services, childcare assistance, and Individualized Home Supports programs.
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Prosecutors allege some suspects billed taxpayers for services never provided, submitted fraudulent diagnoses, and paid kickbacks to parents tied to autism treatment programs.
One of the central allegations involves what officials described as the largest autism healthcare fraud scheme prosecuted in Minnesota.
Federal investigators say defendants allegedly developed a scheme worth more than $40 million connected to the Early Intensive Developmental and Behavioral Intervention (EIDBI) program, which supports children with autism spectrum disorders.
Patel alleged that some defendants “defrauded Minnesota public healthcare resources for tens of millions,” targeting programs tied to healthcare, housing, and childcare assistance across the state.
Prosecutors say parents were allegedly paid kickbacks to enroll children into autism centers regardless of medical necessity, while providers billed Medicaid for services that investigators say were never provided.
The Justice Department said the broader investigation uncovered alleged fraud across seven state-managed Medicaid programs.
Assistant Attorney General Colin McDonald described the case as involving the “highest loss amount ever charged in a Medicaid case” in the district, according to multiple reports.
Federal authorities also alleged that some defendants used the proceeds to purchase luxury homes, jewelry, and vehicles.
Suspect escapes
One suspect reportedly remains at large after escaping custody during operations tied to the investigation.
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Calling the indictments “a massive moment” in the federal crackdown on public fraud, Patel said the investigation was part of a wider effort to dismantle schemes “which grossly abuses and mismanages money from hardworking American taxpayers.”
The latest indictments come amid broader scrutiny over fraud allegations in Minnesota public assistance programs.
Federal investigators have spent months examining multiple schemes tied to housing assistance, autism treatment services, childcare programs, and pandemic-era nutrition funding.
Earlier investigations connected to the “Feeding Our Future” scandal led to dozens of indictments and convictions tied to the misuse of federal child nutrition funds during the COVID-19 pandemic.
In December 2025, Reuters reported that the FBI had expanded investigative resources in Minnesota after Director Patel described earlier fraud cases as “the tip of a very large iceberg.”
The growing investigations have become politically charged, with federal officials and Minnesota state leaders publicly disputing the scale of alleged fraud and oversight failures.
CBS News reported on Thursday that investigators are now examining fraud risks across numerous Minnesota programs, including housing stabilization services and autism support systems, after billing patterns surged dramatically in recent years.
