Attorney General Ellison wins as Court of Appeals reinstates jury’s guilty verdict in $7.2 million Medicaid fraud case

The Minnesota Court of Appeals reinstated a jury's guilty verdict against Abdifatah Abdulkadir Yusuf, owner of Promise Health Services LLC, after the Hennepin County District Court had granted Yusuf's post-verdict motion for judgment of acquittal. The Minnesota Attorney General's Medicaid Fraud Control Unit (MFCU), acting jointly with HHS OIG, charged Yusuf in June 2024 with fraudulently obtaining approximately $7.2 million from Minnesota's Medical Assistance (Medicaid) program. At an August 2025 jury trial, the MFCU presented evidence that Promise Health Services billed Medicaid for home- and community-based services that were not provided, were billed based on false documentation, were overbilled, lacked any supporting documentation, or were induced through kickbacks paid to recipients. Promise operated with no physical office, functioning for years out of a mailbox and disclosing no legitimate operational infrastructure. The Hennepin County jury found Yusuf guilty on six counts of aiding and abetting theft by swindle (each over $35,000) and found multiple aggravating factors supporting an upward departure from Minnesota sentencing guidelines. Following the verdict, Yusuf argued to the district court that the evidence was insufficient to prove beyond a reasonable doubt that he knew of the fraud and intended to aid it. The district court granted the motion, acquitting Yusuf. The MFCU appealed, arguing that the district court misapplied the circumstantial evidence test. The Court of Appeals agreed, holding that the evidence was sufficient to establish Yusuf's knowledge and intent. The Court of Appeals pointed to evidence that Yusuf directed over $1 million from the Promise business account into his personal account, withdrew over $387,000 in cash, spent over $42,000 at luxury automotive dealers, over $80,000 at luxury clothing retailers, and over $22,000 at furniture stores despite Promise having no physical office. The case is remanded to the district court for resentencing, with the jury's guilty verdict and the aggravating-factor findings reinstated.