Federal and state agencies raid Twin Cities autism centers in Medicaid fraud probe

Key points

• Search warrants were executed at Iska Inc. in St. Louis Park and Bright Horizon Therapy in Edina on the morning of October 29, 2026.
• The operation involved the FBI, IRS criminal investigators, the Bureau of Criminal Apprehension, and Minnesota’s Medicaid Fraud Control Unit.
• Both facilities provide Early Intensive Developmental and Behavioral Intervention (EIDBI) services funded by Medicaid.
• Iska Inc. was found with a shattered glass door and boarded-up windows, while Bright Horizon saw agents removing boxes and files.
• Officials confirmed the activity but stated that no further details are available as the investigation is active.

Background

This latest action follows a series of federal raids on autism centers in the Twin Cities in April 2026, which were part of an ongoing probe into EIDBI fraud. In 2025, the state flagged autism services as high-risk for fraud. The current raids occur amid broader political debates in Minnesota regarding law enforcement strategies, though this specific case focuses on financial fraud rather than the gang violence issues highlighted in recent local news.

How outlets are covering it

MPR News and CBS News reported the raids as a joint effort between state and federal agencies, emphasizing the involvement of the Attorney General’s office. 5 EYEWITNESS NEWS highlighted the participation of the U.S. Postal Inspectors and the Department of Health and Human Services Office of Inspector General. FOX 9 provided specific operational details, noting that Iska Inc. serves 10-15 children daily and that Bright Horizon’s billing to the state jumped from under $200,000 in 2020 to over $7.5 million last year. While all outlets confirmed the search warrants, only FOX 9 and CBS News detailed the specific financial records and site conditions, such as the broken glass at Iska Inc.

Why it matters

The raids signal a continued aggressive stance by state and federal authorities against potential fraud in Medicaid-funded healthcare services. The involvement of multiple agencies suggests a coordinated effort to protect public funds. The temporary closure of these centers raises immediate concerns for the children and families who rely on these services, highlighting the impact of fraud investigations on vulnerable populations.

What to watch

Authorities have not indicated whether criminal charges will be filed or how long the centers will remain closed. The Minnesota Department of Human Services stated it is tracking the activity and will refer suspected criminals to law enforcement if evidence of fraud is confirmed. Further details are expected as the investigation progresses.