A Somali-Kenyan woman has been charged in the United States with wire fraud totaling $14 million, with prosecutors alleging she used a portion of the funds to purchase luxury properties in Nairobi, Kenya. Asha Farhan Hassan, 28, owner of Smart Therapy, an autism treatment clinic based in Minneapolis, Minnesota, is accused of submitting false claims to Minnesota’s Early Intensive Developmental and Behavioral Intervention (EIDBI) program and defrauding federal child nutrition programs.
According to court filings, Hassan established Smart Therapy in 2019 and allegedly hired unqualified “behavioral technicians,” often relatives without proper certification, to provide care for children with autism spectrum disorder. Prosecutors claim she inflated service hours and billed Medicaid for services that were either significantly reduced or not provided at all. Between 2020 and 2021, Hassan allegedly claimed nearly 200,000 meals were served to children who never received them, resulting in hundreds of thousands of dollars in fraudulent payments.
The scale of the alleged fraud is substantial. Claims submitted under the EIDBI program increased from $1.7 million in 2017 to $400 million in 2023, although Medicaid only reimbursed half of the claimed amount. Acting U.S. Attorney Joe Thompson described the case as part of a larger network of interconnected fraudulent schemes that have “stolen billions of dollars in taxpayer money,” according to a statement released by the Department of Justice.
Hassan also faces charges related to defrauding federal child nutrition programs out of $465,000 through the now-defunct nonprofit Feeding Our Future. Prosecutors allege she shared the stolen funds with business partners and transferred a significant amount overseas, including to Kenya, where she invested in real estate.
The investigation revealed that Hassan allegedly provided cash kickbacks to parents, ranging from $300 to $1,500 per child, to ensure continued enrollment at Smart Therapy. The first charges in the ongoing investigation into fraud within the EIDBI Autism Program were filed against Hassan, according to the U.S. Attorney’s Office for the District of Minnesota.
Court documents indicate that Hassan formed Smart Therapy LLC in November 2019, listing herself as the sole owner. However, authorities discovered that other individuals held ownership stakes in the company, despite one being banned from owning a daycare for three years.
The case highlights a broader pattern of fraud within Minnesota’s autism services program, with officials noting a significant increase in claims in recent years. The Minnesota Department of Human Services website states the EIDBI program aims to provide medically necessary, early, and intensive intervention for individuals under the age of 21 with autism spectrum disorder and related conditions.
