5 minPolitics
Minnesota Autism Center Tied to Flanagan Ally Faces Medicaid Fraud Investigation
The Milestone Development Center, run by a longtime friend of Minnesota Democratic Senate candidate Peggy Flanagan, is under state investigation for fraud after being terminated from Medicaid. The probe has renewed scrutiny of Flanagan's handling of a sprawling fraud scandal in Minnesota's Somali community.
A Minnesota autism therapy provider operated by a longtime friend of Democratic Senate candidate Peggy Flanagan is under state investigation for fraud, the Minnesota Department of Human Services confirmed, thrusting a viral campaign moment back into the spotlight as Flanagan faces mounting questions over her record on Medicaid fraud.
The Milestone Development Center, run by Nimco Ahmed, is being investigated alongside the Spectrum Therapy Center, according to a DHS spokesperson. Both agencies were terminated from the Medicaid program months ago as part of Minnesota Revalidate 2026, a process that verifies providers hold required credentials and comply with state and federal regulations. Both providers have appealed their termination.
«These agencies are on our radar,» a DHS spokesperson said. «The Minnesota Department of Human Services has open investigations into both Spectrum Therapy Center and Milestone Development Centers. If a provider is part of an open investigation, the department cannot by law disclose details.»
Ahmed appeared beside Flanagan in a video posted on Somali TV that went viral during the state's sprawling fraud scandal, which has largely involved members of the local Somali community. In the video, Flanagan wore a hijab and said, «The Somali community is part of the fabric of the state of Minnesota.» Ahmed, who was born in Somalia, is a longtime Minnesota Democratic-Farmer-Labor Party activist and has reportedly been friends with Flanagan for nearly 25 years.
News of the investigation quickly triggered a wave of criticism aimed at Flanagan, who has served as lieutenant governor since 2019 and has faced repeated questions about why more was not done to address fraud in state programs over the past several years. Conservative commentators seized on the connection between the candidate and the provider under investigation.
«Nimco Ahmed, who stood alongside Peggy Flanagan wearing a hijab, runs an autism center that is now under investigation,» Townhall columnist Dustin Grage wrote on X. «You can't make this stuff up.» Conservative influencer LibsofTikTok posted, «It just never ends,» while retired NYPD inspector and Fox News contributor Paul Mauro wrote, «I can't even keep up anymore.»
Allegations about conditions inside Milestone have also surfaced. A former therapist, Grant Morgan, told Alpha News he worked directly with clients six days a week during his two months at the center in late 2023 and never saw a Qualified Supervising Professional or Board Certified Behavior Analyst overseeing the work. He said many practitioners appeared unqualified and knew little about applied behavior analysis, and that he was never asked to write or sign session notes documenting services, despite those notes being central to how providers bill Medicaid.
Morgan described the treatments as ineffective and said Milestone did not provide comprehensive autism services. He also claimed some clients did not appear to be autistic and said he saw potential billing fraud red flags, though he was not involved in billing. Fox News Digital reached out to Milestone for comment.
Ahmed reportedly told Alpha News that questions about care at her center were «bias» and said the outlet pursued the story because she is Somali. She denied that Milestone lacked QSP or BCBA oversight, said all children had autism diagnoses, and maintained that the center follows state requirements and is regularly audited.
The investigation adds a new dimension to a fraud scandal that has already reshaped Minnesota politics. Flanagan, who is seeking a U.S. Senate seat, has been criticized by a Republican rival who urged her to quit the race after Gov. Tim Walz bowed out of consideration for a national ticket. The DHS confirmed its open investigations but declined to provide further details, citing state law. Flanagan's campaign did not respond to a request for comment.
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