$61M in Minnesota Medicaid funds, including autism and housing money, were stolen via fake clinics and sent abroad to Al-Shabaab, federal prosecutors say.

A major fraud investigation in Minnesota has revealed that hundreds of millions in Medicaid funds, including from autism care, housing, and food programs, were stolen through fake clinics and fraudulent claims, with some money sent abroad via hawala networks to support the terrorist group Al-Shabaab. Federal prosecutors say the state’s taxpayers are now the largest financial backers of Al-Shabaab, with $61 million in welfare funds misused in the first half of 2025 alone. Eight individuals, mostly from the Somali community, were indicted in September 2025, and over 70 providers were cut off due to fraud. Officials describe the scheme as unprecedented, highlighting systemic failures in oversight.