Federal agents searched two autism service providers on Thursday morning. One of the provider, Smart Therapy Center, is located in Minneapolis and reportedly has connections with Feeding Our Future, a now-defunct nonprofit at the center of another federal fraud investigation.
According to a search warrant obtained by Alpha News, the federal government has reason to believe that Smart Therapy Center has committed wire fraud, healthcare fraud, and conspiracy to commit wire and healthcare fraud. Star Autism Center in St. Cloud was also searched by federal agents today in connection with the alleged fraud.
Autism centers receive federal funds through Minnesota’s human services department
The Minnesota Department of Human Services (DHS) administers a program called Early Intensive Developmental and Behavioral Intervention (EIDBI) which is funded with federal Medicaid dollars and provides services to people with autism under the age of 21.
In short, businesses and organizations that provide necessary support services to qualifying individuals on the autism spectrum can receive reimbursements through the EIDBI program for administering those services.
According to the federal search warrant, Minnesota has seen an explosion of reimbursements issued for EIDBI-related services in recent years.
In 2017, roughly $1.2 million of Medicaid funds were issued for EIDBI-related services. Since then, the annual number of reimbursements grew dramatically; in 2023, over $200 million in reimbursements were issued, and over $228 million in reimbursements have been issued in 2024 as of Nov. 27.
“Starting in approximately 2019, dozens and dozens of autism clinics and other companies purportedly providing EIDBI services were opened in Minnesota,” says the search warrant. “Many of these companies immediately enrolled in the EIDBI program and began submitting claims for millions of dollars in Medicaid reimbursements for EIDBI services.”
Smart Therapy Center searched Thursday morning
Located in Minneapolis, Smart Therapy Center was officially incorporated with the Minnesota Secretary of State’s Office back in November of 2019. Earlier today, the center was searched by federal agents.
According to the search warrant, Smart Therapy Center received approximately $13.8 million in reimbursements for providing EIDBI-related services between 2020 and November 2024.
During the federal investigation into Smart Therapy Center, agents interviewed a former employee of the Smart Therapy Center who reportedly said the staff of the organization were relatives of the owners, were not qualified to provide treatment, and that supervisors would submit reimbursement claims that were not accurate.
The search warrant also says Smart Therapy Center billed Medicaid for “EIDBI services purportedly provided by medical providers who did not work for Smart Therapy” and for “EIDBI services purportedly provided by medical providers who were outside of the United States.”
According to the search warrant, federal authorities are seeking documents, correspondence, financial records and other relevant information.
Additionally, the search warrant states that Smart Therapy Center participated in the same federal child nutrition program that many other organizations defrauded over several years.
According to the search warrant, Smart Therapy Center received reimbursements for serving meals to needy children. The organization reportedly participated in the program under the sponsorship of Feeding Our Future, a nonprofit allegedly at the center of one of the largest fraud schemes in Minnesota history.
The search warrant states that Smart Therapy Center received roughly $465,000 in reimbursements after a staffer submitted multiple claims saying the organization fed thousands and thousand of children in 2020 and 2021.
Federal authorities reportedly started the investigation into the alleged autism provider fraud after noticing both the dramatic increases in EIDBI reimbursements, and that many of the entities involved in the Feeding Our Future scheme also operated autism centers.
The federal search warrant appeared to indicate that many more autism centers could be involved in the alleged fraud.
Investigators say they have 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.”
Alpha News attempted to reach both organizations Thursday but was unsuccessful. This story will be updated if and when they provide a comment.
This is a developing story.
Luke Sprinkel
Luke Sprinkel previously worked as a Legislative Assistant at the Minnesota House of Representatives. He grew up as a Missionary Kid (MK) living in England, Thailand, Tanzania, and the Middle East. Luke graduated from Regent University in 2018.
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