Judge Vacates $7.2M Medicaid Fraud Verdict; Minnesota Senator Labels Ruling a “True Extremist”

A Hennepin County judge has vacated the August conviction of Abdifatah Yusuf, who prosecutors alleged stole $7.2 million from Minnesota's Medicaid program while operating a home health care business. The decision, issued in mid-November by Judge Sarah West, has reignited debate over prosecutorial evidence, judicial discretion and transparency in high-profile fraud cases.

State prosecutors charged Yusuf and his wife, Lul Ahmed, in June 2024. The Attorney General’s Office alleged the business operated without a proper office and for years functioned "out of a mailbox," billing Medicaid for services that were not provided or that lacked supporting documentation. Authorities said Yusuf transferred more than $1 million from the business account to his personal account and withdrew over $387,000 in cash, and prosecutors pointed to luxury purchases as illustrations of an allegedly ostentatious lifestyle.

A jury convicted Yusuf in August on six counts of aiding and abetting theft by swindle (over $35,000). In her ruling to vacate the verdict, Judge West wrote that prosecutors had relied heavily on circumstantial evidence and that the state had not excluded other reasonable inferences. She added that, while she was troubled by how fraud was able to be perpetrated at the business, the evidence did not meet the legal standard required to sustain the jury’s verdict.

Political reaction and calls for transparency. Republican state Sen. Michael Holmstrom sharply criticized the judge’s decision, describing West as a "true extremist" whose courtroom approach, he said, undermines public confidence in the justice system. Holmstrom has requested access to a sealed exhibit he says contains an international money order to an unnamed recipient abroad; that request has not yet been granted. He has urged greater transparency about how taxpayer dollars and remittances are traced in such cases.

"Judicial reform is necessary in Minnesota… This wasn't an extreme situation. This is just how she operates," Holmstrom said. "I think that she is a true extremist, that her ideology is running her courtroom and damaging our justice system."

The jury foreperson in Yusuf’s trial said the verdict was straightforward, noting that deliberations lasted about four hours and that the jurors believed the state had proven guilt beyond a reasonable doubt.

The Minnesota Attorney General’s Office, led by Attorney General Keith Ellison, has appealed Judge West’s decision to vacate the conviction. Yusuf’s attorney, Ian Birrell, praised the ruling as vindication, saying the court’s judgment reflects the principle that convictions must be based on fair and sufficient proof.

"Judge West's ruling affirms what we have maintained from the beginning: our client Mr. Yusuf was wrongfully accused and did not commit fraud or racketeering," Birrell said. "The Court's decision to enter judgments of acquittal on all charges reflects the fundamental principle that justice requires both fairness and proof."

Context and wider concerns. The Yusuf case arrives amid heightened scrutiny of fraud in Minnesota, including investigations into the Feeding Our Future scheme and alleged abuses tied to the Medicaid Housing Stabilization Services program. In November, federal immigration protections for Somalis in Minnesota were ended by presidential action that cited concerns about organized gangs and billions missing — a move that followed a report alleging some funds may have been diverted to extremist groups. These broader controversies have amplified public interest in how large-scale fraud investigations are conducted and adjudicated.

Representatives for Judge West did not immediately respond to requests for comment. The appeal will determine whether the vacated verdict is reinstated or the acquittal stands.