FBI searching autism centers in Minneapolis, St. Cloud after finding ‘substantial evidence’ of health care fraud

The FBI is searching at least two Minnesota autism centers Thursday morning as part of an investigation that it said revealed “substantial evidence” of fraudulent Medicaid claims made by many companies participating in a state program to serve people under 21.

Agents were searching at least two locations as of Thursday morning, according to a 54-page search warrant application: Smart Therapy Center’s business office in Minneapolis and Star Autism Center’s office in St. Cloud. A Star Tribune reporter observed FBI agents in the hallway of Smart Therapy Center’s office early Thursday morning.

The searches are in connection with an investigation into fraud related to the state-funded Early Intensive Developmental and Behavioral Intervention (EIDBI) health care program that serves people under 21 with autism spectrum disorder.

The state paid Smart Therapy Center more than $8 million from 2020 to 2023, according to Department of Human Services data, the 10th most of any provider of EIDBI services. Star Autism Center received $3.2 million between 2021 and 2023.

The state became one of the first to offer Medicaid coverage for EIDBI services in 2017 and, according to the search warrant, “dozens and dozens of autism clinics and other companies purporting to offer EIDBI treatment have been created in Minnesota.” That includes several people involved in the Feeding Our Future fraud scheme, according to FBI Special Agent Kurt Beulke.

Minnesota’s EIDBI program has seen an exponential growth in Medicaid billing submitted for its services: Minnesota companies billed the state for roughly $400 million in such services in both 2023 and 2024 for Minnesota Medical Assistance and related public health plans, the warrant describes.

Beulke wrote that the FBI’s investigation “has found substantial evidence that many of these companies have been submitting fraudulent claims for EIDBI services that were not actually provided or that were not covered by the EIDBI program.

This is a developing story. Stay tuned to startribune.com for updates.

Staff writer Jessie Van Berkel contributed to this report.