Today’s (alleged) fraud comes to us courtesy of investigative reporter A.J. Lagoe and the KARE-11 team. They report,
TikTok video alleges Medicaid billing fraud.
The details,
A Minnesota company is facing allegations of Medicaid fraud after a man claimed more than $200,000 in charges were falsely billed in his name.
Mohamed Ali said he first learned of the company, Action Therapy LLC, after requesting his insurance billing records.
KARE-11 reports on Action Therapy and their business,
When KARE 11 first started looking into Action Therapy, the company was promoting itself online as a psychotherapy provider which offered “comprehensive, dependable, and culturally relevant behavioral health treatments.”
That was then, this is now,
Later, in July 2025, the company launched a new website, which now describes Action Therapy as a provider specializing in the Adult Rehabilitative Mental Health Services (ARMHS) program, which helps clients with daily life skills such as budgeting, cooking, medication management, and communication.
ARMHS is a Medicaid-funded program overseen by the Minnesota Department of Human Services (DHS).
It always comes back to DHS. The company’s response,
When Ali questioned the charges, Action Therapy manager Abas Farah responded in an email, blaming the issue on “a clerical mix-up” where two clients with the same name but different dates of birth had their profiles accidentally merged.
KARE-11 digs deeper,
The company’s website and state business filings list Action Therapy’s address in Roseville at 2355 Highway 36 W, Suite 400.
That is the same address and suite KARE 11 previously found tied to Liberty Plus, a Housing Stabilization Services (HSS) company.
As for DHS,
KARE 11 has repeatedly requested billing data from DHS to analyze ARMHS spending – the same type of data the reporting team used to expose widespread fraud in Housing Stabilization, Certified Peer, and Addiction Recovery programs.
Despite state law requiring timely responses, DHS has not provided the records after more than four months.
It seems like just yesterday (because it was) that the Acting U.S. Attorney for Minnesota, Joe Thompson, announced a new indictment in the ongoing autism-clinic fraud scandal.
In media interviews, Thompson has indicated that he expects his office will end up charging $1 billion in fraud cases. Thompson indicates that, “these massive fraud schemes form a web that has stolen billions of dollars in taxpayer money.”
That’s billions, with a “b” plural. I’ve been asked (and I’m tempted myself) to update ScandalTracker 2025 to reflect the latest scandals and dollar amounts.
The U.S. Attorney obviously has access to more data (bank records, federal databases) than I do. When I revived the ScandalTrackerTM franchise, the purpose was to draw attention to the scale and scope of frauds against state taxpayers in Minnesota. At the time, Democrats and legacy media outlets dismissed talk of fraud as either “old news” or a Republican hoax.
Now that we’re approaching five dozen convictions in the Feeding Our Future scandal, and charges filed in the autism clinic, HSS, and other scandals, the scale and scope of the problem should be undeniable.
We hear from Thompson at least weekly on the fight against fraud. DHS hasn’t put out a press release, on any topic, in nearly two months.
We should have a DOGE-like running ticker of the $ saved for taxpayers by preventing fraud before it happens. Instead, we have radio silence and the hope the feds keep at it.
