Minnesota Agents Execute Search Warrants in Medicaid Fraud Probe

Federal and State Agents Raid Two Twin Cities Autism-Services Entities in Medicaid Fraud Probe

Federal law enforcement agents and investigators from the Minnesota Attorney General’s Office descended on two Twin Cities businesses this morning, executing search warrants as part of an active Medicaid fraud investigation. The coordinated raids targeted Iska, Inc. in St. Louis Park and Bright Horizon Therapy Center in Edina, both of which provide EIDBI (autism) services alongside other Medicaid-funded healthcare provisions.

The operation brings together agents from the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General, and Minnesota Attorney General Keith Ellison’s Medicaid Fraud Control Unit (MFCU). According to the Attorney General’s Office, the joint sweep involves scrutiny over providers billing the state’s medical assistance program for specialized developmental care.

“Today, as part of our ongoing efforts to fight fraud, my Medicaid Fraud Control Unit worked alongside federal law enforcement to execute two search warrants at Medicaid-funded businesses that we are actively investigating,” Attorney General Ellison said in a statement released by the state.

Weighing Recoveries Against Evolving Oversight

The morning raids land against a backdrop of aggressive state enforcement. Since 2019, Minnesota’s MFCU has secured 358 convictions for Medicaid fraud, pulling back $90 million in judgments and recoveries. Federal oversight bodies have pointed to the unit’s productivity, noting that Minnesota secures more convictions than any state in the country with a similarly sized Medicaid budget.

Those enforcement powers were recently bolstered in May 2026, when the Minnesota Legislature passed and Governor Walz signed the Medical Assistance Protection Act. The legislation equipped the MFCU with fresh legal tools and expanded resources designed to target providers accused of exploiting public healthcare dollars.

Federal health inspectors recently evaluated the state unit’s operations, reporting that the MFCU “is using its resources effectively to investigate cases of possible fraud in the administration of the Medicaid program, the provision of medical assistance, or the activities of providers of medical assistance under the State Medicaid plan, and to prosecute cases or cooperate with the prosecuting authorities” and that it is “extremely willing to work jointly and pursue aggressive prosecution of fraud.”

Funding and Accountability in Public Healthcare Programs

The stakes for the targeted facilities and the broader healthcare sector are high. Attorney General Ellison’s MFCU dedicates 100% of its time to uncovering, investigating, and prosecuting individuals or organizations that steal from Medicaid and that exploit, neglect, or abuse vulnerable victims. Financially, the unit operates on a federal grant covering 75 percent of its budget—totaling $5,078,704 for federal fiscal year 2026—with the remaining 25 percent, or $1,692,898, funded by the State of Minnesota.

As the investigation into Iska, Inc. and Bright Horizon Therapy Center continues, officials have not yet released preliminary findings from the executed warrants, leaving the immediate operational future of both clinics uncertain as federal and state investigators sift through seized records.