Medicaid fraud investigation: What we know about the 2 autism centers involved
Medicaid fraud investigation: What we know about the 2 agencies involved
Two metro autism care centers are closed after state and federal agents searched them Thursday in a Medicaid fraud investigation. FOX 9's Emily Pofahl and Paul Blume have team coverage.
ST. LOUIS PARK, Minn. (FOX 9) - Two metro autism care centers are closed after state and federal agents searched them Thursday in a Medicaid fraud investigation.
Searches at 2 metro autism centers
What we know:
Attorney General Keith Ellison’s office identified the businesses as Iska Inc. in St. Louis Park and Bright Horizon Therapy Center in Edina. Both are autism service providers and are under investigation for suspected fraud, the office said.
Federal officials described the raids as "court-authorized investigative activity," but provided no further details about the investigations.
Officials said the agencies involved include the FBI, the Department of Health and Human Services Office of Inspector General, U.S. Postal Inspectors, IRS criminal investigators, the Minnesota Bureau of Criminal Apprehension and the Minnesota Medicaid Fraud Control Unit.
According to employees, Iska Inc. operates seven days a week, serving 10-15 children per day. FOX 9 observed the St. Louis Park site partially boarded up, and the glass at the entrance appeared to be broken.
Local perspective:
Drew Mills works across the parking lot from Bright Horizons in Edina and saw the search.
"I'm not surprised. Just because for this specific building I have seen, it seems like nothing is going on there," Mills said. "We've just kind of been monitoring it. It seems like people just kind of show up real quick, leave. Or there will be days where no one shows up all day."
Timeline:
At about 7 a.m. Thursday, before Iska opened, employees said agents went in and out of the St. Louis Park center. Just before 8 a.m., a nearby worker said agents also went into Bright Horizons in Edina and started bringing out records.
FOX 9 later saw agents taking boxes and files from Iska's corporate office. Calls and emails to Iska and to Bright Horizons were not returned.
Agencies and records tied to case
Records show Iska had a failed DHS site visit and a correction order from 2024.
What they're saying:
"We will keep holding fraudsters accountable without fear or favor to protect public dollars and protect Minnesotans who rely on Medicaid," said Minnesota Atty. Gen. Keith Ellison.
"When we see evidence of fraud, we shut off money and refer suspected criminals to law enforcement. We are thankful to see criminals being held accountable," said a Minnesota DHS spokesperson.
What we don't know:
Officials have not said whether charges are coming. It also remains unclear how long the centers will stay closed or where the children employees say they care for every day will go.
Big picture view:
The raids come as the White House announced Vice President JD Vance would make an appearance in St. Cloud to make a fraud announcement. It's unclear if these raids are directly connected to Vance's announcement.
The Source: FOX 9's Paul Blume and Emily Pofahl reporting, Minnesota DHS records, plus statements from Minnesota Atty. Gen. Keith Ellison and a Minnesota DHS spokesperson.