Minnesota Judge Overturns Jury's Guilty Verdict in $7.2 Million Medicaid Fraud Case, Frees Somali Immigrant

MINNEAPOLIS — In a stunning courtroom reversal that has left jurors reeling and critics fuming, Hennepin County Judge Sarah West on Monday tossed out a unanimous guilty verdict against Abdifatah Abdulkadir Yusuf, a Somali immigrant convicted of orchestrating a brazen $7.2 million Medicaid fraud scheme. The decision, which prosecutors say they will appeal, has thrust Minnesota's judicial system into the national spotlight, fueling accusations of leniency toward immigrant defendants amid a wave of welfare scams plaguing the state.

Yusuf, 42, the owner of Promise Health Services LLC, faced one count of racketeering and six counts of aiding and abetting theft by swindle after a jury deliberated for just hours following a two-week trial in October. Prosecutors painted a picture of systemic deceit: Yusuf allegedly submitted fraudulent claims to Minnesota's Medicaid program for personal care assistant (PCA) services that were never provided, overbilled for legitimate ones, forged documentation to inflate reimbursements, and doled out kickbacks to complicit "clients" to keep the scheme humming. The operation, run out of a shared mailbox on Minneapolis's Central Avenue, reportedly funneled millions in taxpayer dollars—intended for vulnerable elderly and disabled residents—into personal luxuries like high-end cars and designer apparel for Yusuf and his wife, Lul Ahmed, who faces separate charges.

"It was not a difficult decision whatsoever," jury foreperson Ben Walfoort told reporters outside the courthouse, his voice laced with disbelief. "We didn't take our job lightly. All the evidence pointed to guilt—clear as day." Another juror echoed the sentiment: "I'm shocked. Shocked based on all the evidence and the obvious guilt we saw." The panel, after reviewing bank records, witness testimonies from undercover investigators, and ledgers showing phantom services billed at inflated rates, convicted Yusuf on all counts in under a day.

But in a 12-page ruling issued Thursday, Judge West—a Democrat appointed by former Gov. Mark Dayton in 2018—granted Yusuf's post-trial motion for acquittal, effectively erasing the jury's findings. Citing Minnesota Rule of Criminal Procedure 26.03, which allows judges to intervene if evidence is deemed insufficient to sustain a conviction, West argued the state's case "relied heavily on circumstantial evidence" and failed to "eliminate reasonable inferences consistent with innocence." She noted that while fraud clearly permeated Promise Health—"I am troubled by the manner in which fraud was able to be perpetuated"—prosecutors couldn't conclusively prove Yusuf's direct involvement beyond a reasonable doubt.

Defense attorney Ian Birrell hailed the decision as a vindication. "Judge West's ruling affirms what we have maintained from the beginning: our client was wrongfully accused and did not commit fraud or racketeering," Birrell said in a statement. "The Court's decision reflects the fundamental principle that justice requires both fairness and proof beyond a reasonable doubt." Yusuf, who has lived in Minnesota since arriving as a refugee in the early 2000s, declined comment through his lawyer but was released immediately pending any appeal.

The ruling comes amid Minnesota's escalating battle against Medicaid fraud rings, many tied to the state's large Somali-American community. Federal and state probes have uncovered schemes siphoning hundreds of millions, with some funds allegedly routed to al-Shabaab, the al-Qaeda-linked terrorist group in Somalia. In a June 2024 statement before the verdict, Minnesota Attorney General Keith Ellison decried such scams: "Stealing money meant for poor people's healthcare and using it to buy luxury cars and designer clothes is as shameful and disgraceful as it gets. Minnesotans believe in helping our neighbors, but we have no patience for fraudsters."Outrage erupted swiftly from conservative corners. "If the defendants are of the right demographic group, jury verdicts are meaningless," tweeted activist Robby Starbuck, capturing the sentiment rippling across social media. State Rep. Kristin Robbins (R-Maple Grove), chair of the House Fraud Prevention and State Oversight Committee, called herself "stunned" and vowed legislative action. "We want to strengthen state law so that we can get prosecutions out of these cases," Robbins said. "Because clearly a jury thought he was guilty." Legal analyst Joe Tamburino, unaffiliated with the case, told KARE 11 the move was rare but defensible: "There could have been other reasonable theories other than guilt."

Prosecutors, led by Hennepin County Attorney's Office, confirmed they are "weighing options" for an appeal—a procedural rarity allowed precisely because the ruling overrides a jury's will. The Minnesota Court of Appeals could take up the case as early as next month, potentially setting precedent for dozens of similar ongoing trials.

For now, as Yusuf walks free, the episode underscores deep fissures in Minnesota's approach to immigration, welfare, and justice. Advocates for tighter fraud controls warn it could embolden scammers, while civil rights groups decry the politicization of a single ruling. In a state where Somali immigrants number over 80,000 and contribute vibrantly to communities, the line between accountability and bias remains razor-thin—and fiercely contested. 17GEN4.com