A political debate has intensified in Minnesota after a judge overturned a $7.2 million taxpayer fraud conviction involving the state’s Medicaid program. The case centers on Abdifatah Yusuf and his wife, Lul Ahmed, who were charged in June 2024 for allegedly stealing millions while running a home healthcare business that authorities say operated for years from nothing more than a mailbox. According to the Minnesota Attorney General’s Office, Yusuf billed Medicaid for services that were never provided, lacked proper documentation, or were excessively overbilled. Investigators say he used the money to enjoy an expensive lifestyle, shopping at luxury brands such as Coach, Michael Kors, Nike, and Nordstrom, and moved more than $1 million from the company’s account into his personal account. He also withdrew more than $387,000 in cash, raising more suspicion about how the funds were being spent.
In August, a jury found Yusuf guilty on six counts of aiding and abetting theft by swindle over $35,000. But that verdict was unexpectedly thrown out in mid-November by Judge Sarah West, who ruled that the prosecution relied too heavily on circumstantial evidence and failed to rule out other reasonable explanations for what happened. While Judge West said she was troubled by how long the alleged fraud was able to continue within the company, she concluded that the evidence presented in court did not meet the legal standard required to uphold the conviction.
Her decision has drawn strong criticism from Republican State Senator Michael Holmstrom, who publicly accused the judge of being a “true extremist” and claimed her ideology was influencing her decisions. Holmstrom argued that Minnesotans are losing trust in the justice system when rulings like this occur, and he believes the judge exceeded her authority by overturning a unanimous jury verdict. He added that he had also requested access to a sealed exhibit in the case involving an international money order sent to an unidentified person in an unknown country, raising new questions he said Minnesotans deserve answers to. As of now, that request has not been granted.
The jury foreperson, Ben Walfoort, expressed shock after hearing that the conviction had been dismissed. He said the jury came to its decision easily and that the evidence showed guilt beyond a reasonable doubt. According to him, the deliberations only took about four hours because the case seemed straightforward.
Meanwhile, Minnesota Attorney General Keith Ellison, whose office prosecuted the case, has appealed Judge West’s ruling. This comes at a time when Minnesota is already dealing with several fraud-related scandals, including the massive “Feeding Our Future” case, where hundreds of millions in COVID-19 relief funds were allegedly stolen. The Medicaid Housing Stabilization Services program has also faced scrutiny for vulnerabilities that may have enabled fraudulent claims.
Outside the courtroom, the issue has overlapped with national politics. Former President Donald Trump recently ended deportation protections for Somalis living in Minnesota, claiming the state is dealing with Somali gangs and missing billions of dollars. His statement followed a report from the conservative Manhattan Institute, which alleged that some money stolen in Minnesota may have been funneled to the Al-Shabaab terror group, although these claims remain part of a larger political dispute and are not directly tied to Yusuf’s case.
Yusuf’s attorney, Ian Birrell, praised Judge West’s ruling, saying it confirmed what the defense had argued from the start— that Yusuf was wrongly accused and did not commit fraud or racketeering. Birrell said the acquittal shows the importance of fairness and proof in the justice system, and he thanked the court for carefully reviewing the evidence.
