The Largest Autism Therapy Fraud Case in U.S. History: What Minnesota's $90 Million Scheme Means for Your Family

On May 21, 2026, the U.S. Department of Justice announced criminal charges against 15 defendants in what prosecutors called an "unprecedented" fraud scheme targeting Minnesota's publicly funded autism therapy program. The case, which involves more than $90 million in alleged fraud across multiple Medicaid programs, includes what the DOJ described as the largest Medicaid autism fraud case ever charged by the Department: a $46.6 million scheme targeting children with autism.

For parents and families across the country, this case is a sobering reminder that fraud in autism services does not just cost taxpayers money. It steals care from children who genuinely need it. Here is what happened, why it matters, and what you can do to protect your family.

What Happened in Minnesota

The charges center on the Early Intensive Developmental and Behavioral Intervention (EIDBI) program, a Minnesota Medicaid program that provides services to people under the age of 21 with autism spectrum disorder (ASD) and related developmental disabilities. Since 2017, EIDBI has grown dramatically, with annual claims rising from roughly $600,000 to more than $400 million by 2025.

That kind of explosive growth attracted fraud. According to federal prosecutors, the defendants in the largest scheme ran autism centers that billed Medicaid for services that were never provided, enrolled children regardless of whether they had a genuine autism diagnosis, and paid kickbacks to parents in exchange for bringing their children to the centers. Some defendants also allegedly recruited families by helping children who did not have autism qualify for services anyway.

The scheme defrauded taxpayers of an estimated $46.6 million. Federal agents executed search warrants at five Twin Cities autism centers in April 2026, with related searches conducted in Washington and Massachusetts. Charges were unsealed in May 2026, and multiple defendants have since entered or are expected to enter guilty pleas.

How This Fraud Harmed Real Children

This was not a victimless paperwork crime. According to prosecutors, the fraud scheme harmed children and families in several ways:

• Children with real autism were crowded out. When limited Medicaid slots and resources go to fraudulent enrollees, children who genuinely need intensive behavioral intervention face longer waitlists and fewer available providers.
• Children were enrolled without valid diagnoses. Some children in these programs were reportedly not autistic. Receiving ABA therapy when it is not medically appropriate is, at minimum, a waste of a child's time and, at worst, can be disorienting and harmful.
• Families were misled. Parents who accepted cash kickbacks for enrolling their children may not have fully understood what their children were or were not receiving.
• One man died in related circumstances. In a separate case connected to the broader investigation, a disabled adult was supposed to receive 24-hour care. Fraudulent Medicaid claims for his care continued to be filed even after he was found dead, having allegedly received no actual services.

Why This Case Is Significant Nationally

The Minnesota case is part of a broader national pattern. The U.S. Department of Health and Human Services Office of Inspector General (OIG) has launched a 50-state audit of Medicaid ABA billing, and has already identified hundreds of millions of dollars in improper payments in Colorado, Indiana, Wisconsin, and Maine. While many of those cases involve billing errors at legitimate providers rather than criminal fraud, they reflect the same underlying problem: an ABA therapy system that has grown faster than the oversight infrastructure designed to manage it.

ABA therapy is one of the fastest-growing Medicaid expenditures in the country. In North Carolina, for example, ABA Medicaid spending grew from $122 million in fiscal year 2022 to a projected $639 million in fiscal year 2026. Nationally, spending runs into the billions. That level of growth creates both genuine demand from families and, unfortunately, opportunities for exploitation.

Warning Signs of Fraudulent ABA Therapy

Most ABA therapy providers are legitimate professionals dedicated to helping children. However, the Minnesota case illustrates specific warning signs that families should be aware of when evaluating any ABA program.

Warning Signs in How the Clinic Operates

• Cash payments or gift cards offered for enrollment. No legitimate ABA provider pays you money to bring your child to therapy. Kickbacks for referrals or enrollment are a federal crime.
• Pressure to have your child "qualify" for services. Reputable providers conduct thorough assessments and will not push a diagnosis. If someone is coaching you on how to get a diagnosis, walk away.
• Vague or no documentation of therapy goals. Every legitimate ABA program must have a written treatment plan with measurable, individualized goals. If your provider cannot produce one, that is a red flag.
• Staff are uncredentialed or unsupervised. ABA therapy should be supervised by a board certified behavior analyst (BCBA). The BCBA should be directly involved in your child's program, not just a name on paper.

Warning Signs on Your EOB or Insurance Statement

• Claims filed for days your child did not attend. Review your Explanation of Benefits (EOB) or Medicaid billing statements and compare them to your child's actual attendance.
• Unusually high hours billed. If billing statements show your child received more hours of therapy than they actually did, that is ghost billing.
• Services billed by providers your child never saw. If an unfamiliar provider name appears on your EOB, contact your insurer immediately.

What to Do If You Suspect Fraud

If you believe your child's ABA provider may be committing Medicaid fraud or insurance fraud, you have several reporting options:

• Contact your state Medicaid fraud control unit. Every state has a Medicaid Fraud Control Unit (MFCU) that investigates fraud against the state's Medicaid program. A list can be found through the National Association of Medicaid Fraud Control Units.
• Report to the HHS Office of Inspector General. The OIG operates a fraud hotline at 1-800-HHS-TIPS (1-800-447-8477) and an online reporting portal at oig.hhs.gov.
• Contact your insurance company. If your child is on a private insurance plan, report suspected fraud directly to your insurer's fraud department. The number is usually on your insurance card or the back of your EOB.
• Contact the FBI. The FBI investigates federal healthcare fraud cases like the Minnesota scheme. Tips can be submitted at tips.fbi.gov.

You cannot be retaliated against for reporting suspected healthcare fraud in good faith. Whistleblowers in federal fraud cases may also be eligible for a portion of funds recovered.

What Legitimate ABA Therapy Looks Like

Knowing what fraud looks like is more useful when you also know what legitimate, high-quality ABA therapy looks like. Here is what reputable ABA programs do:

• Conduct a thorough intake process including a functional behavior assessment (FBA) before therapy begins
• Develop a written treatment plan with individualized, measurable goals that are reviewed and updated regularly
• Employ credentialed BCBAs to design and supervise therapy, and registered behavior technicians (RBTs) to deliver direct services
• Collect data during every session and share progress reports with families
• Actively involve parents in therapy through caregiver training
• Recommend the number of therapy hours based on your child's individual needs, not on what insurance will pay or what maximizes revenue

Finding a Provider You Can Trust

With thousands of ABA providers in the United States, most families will never encounter fraud. But it is reasonable to ask questions and to expect transparency from your child's provider. The ABA Navigator directory lists ABA therapy providers across the country with information on their credentials, services, and insurance acceptance.

When evaluating a new provider, ask to see their BCBA's current BACB certification number and verify it at bacb.com. Ask to see a sample treatment plan format and find out how progress is measured. Legitimate providers will welcome these questions.