Federal officials announced criminal charges on Friday against four operators of childcare and healthcare centers in Minnesota, alleging schemes designed to steal more than $41 million in taxpayer-funded aid.
Representatives from the FBI, the Centers for Medicare & Medicaid Services, and the Treasury Department detailed the enforcement actions at a joint press conference in St. Cloud. The cases stem from an interagency effort connected to the White House Fraud Task Force.
The FBI’s Minneapolis field office executed 17 search warrants on Thursday, resulting in a 26-count indictment and four arrests, according to FBI Director Kash Patel.
Those charged include Feisal Elmi, of Aspen Associates, facing 11 counts of healthcare fraud linked to $8 million in intended losses; Jama Mohamod, of American Home Health Care, charged with six counts of healthcare fraud tied to $3.27 million; Faiza Ahmed, of Home Sweet Home, charged with eight counts of healthcare fraud involving $10 million; and Habiba Mohamed, of Smart Therapy, charged with one count of conspiracy to defraud the United States in connection with nearly $20 million in intended losses.
Patel stated that the operations were designed to siphon funds earmarked for social safety programs.
“This FBI followed the money,” Patel said. “This FBI will put in prison anyone who commits fraud anywhere in the world against any American citizen.”
He further noted that federal teams intend to coordinate with local agencies across jurisdictions. “We are going to continue working with our state and local partners and interagency to dismantle, disrupt and take down fraud networks wherever they are, in Minnesota in St. Cloud and everywhere else in the country,” Patel said.
Patel also reported that broader investigations linked to the nonprofit Feeding Our Future have resulted in charges against 81 individuals, 70 convictions, and more than $500 million in combined restitution orders.
Vice President JD Vance, who leads the task force, had been scheduled to attend the briefing but canceled hours prior, a spokesperson from the U.S. Attorney’s Office in Minnesota confirmed. The office did not provide a reason for his absence.
CMS Administrator Dr. Mehmet Oz identified the state as a central focus of federal enforcement efforts.
“In many ways, the war on fraud, our nation’s war on fraud, started right here in Minnesota,” Oz said. “We have been doing a lot of work in Minnesota, as we have in many other states. The problems here are not unique to Minnesota, but they are particularly evident in Minnesota.”
Oz identified pandemic-era relief spending as an opportunity that bad actors exploited within healthcare networks.
“During COVID, we introduced the possibility of fraud into the federal government, especially in health care services,” Oz said. “And they have taken advantage of it. We are moving on to the big boy. The secretary just yesterday inaugurated their closer relationship with the IRS, which is going to be a very valuable asset because if people are lowly enough to steal from the poor, if criminals take from the poor, they’re almost certainly not paying their taxes.”
Treasury Secretary Scott Bessent outlined expanded cooperation between task force investigators and the Internal Revenue Service, noting that IRS Criminal Investigation agents participated in Thursday’s site operations.
“Since the start of the Trump administration, we have supported law enforcement efforts that led to the arrest and charging of 115 fraudsters, as well as 75 convictions and nearly 3,000 subpoenas across Minnesota,” Bessent said.
Bessent described the IRS unit as essential to tracing assets, adding, “They don’t get much press, but they are one of the most effective groups in the United States government for fighting fraud.”
Colin M. McDonald, assistant attorney general for the National Fraud Enforcement Division, reported that 14 fraud defendants in Minnesota have received prison sentences totaling 988 months.
“We are working hand in hand with the talented and dedicated agents and analysts with the FBI, IRS, HSI, HHS, OIG, Postal Inspection Service, USDA OIG and other law enforcement partners to do this work, and I thank them all,” McDonald said. “Let me be clear. This is still the beginning of our work in Minnesota. We will be here for as long as it takes to punish the wrongdoers in Minnesota.”
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