State fraud investigators in Minnesota have initiated formal probes into two autism therapy providers, Milestone Development Center and Spectrum Therapy Center. Both agencies are now under active investigation by the Minnesota Department of Human Services (DHS). Nimco Ahmed serves as the chief executive officer of Milestone Development Center, a business now facing heightened public attention due to its state investigation and Ahmed's long-standing friendship with Democratic Senate candidate Peggy Flanagan.
"Several months ago, the Minnesota Department of Human Services terminated both agencies from participating in the Medicaid program as part of Minnesota Revalidate 2026. Revalidation is a process to verify that agencies have required credentials and are otherwise compliant with state and federal regulations. Both providers have appealed their termination." Spokesperson, Minnesota Department of Human Services
The Minnesota Department of Human Services confirmed the open investigations to Fox News Digital after the story was first reported by Alpha News. DHS officials, while cautious with their public statements, acknowledged the situation. A spokesperson for the department stated, "These agencies are on our radar," and elaborated, "The Minnesota Department of Human Services has open investigations into both Spectrum Therapy Center and Milestone Development Centers. If a provider is part of an open investigation, the department cannot by law disclose details."
Despite the ongoing investigations, the DHS confirmed a significant consequence for both providers. "We can, however, share the following: Several months ago, the Minnesota Department of Human Services terminated both agencies from participating in the Medicaid program as part of Minnesota Revalidate 2026." Revalidation is a standard process designed to verify that healthcare agencies possess the necessary credentials and comply with all applicable state and federal regulations. Both Milestone Development Center and Spectrum Therapy Center have appealed their terminations from the Medicaid program and have not yet been reinstated.
Nimco Ahmed's business has drawn particular scrutiny due to her nearly 25-year friendship with Peggy Flanagan, who has served as Minnesota's lieutenant governor since 2019 and is a Democratic Senate candidate. Ahmed has a long history as an activist within Minnesota’s Democratic–Farmer–Labor Party. The friendship gained wider public visibility through a video filmed for Somali TV, in which Flanagan appeared wearing a hijab alongside Ahmed. In the video, Flanagan declared, "The Somali community is part of the fabric of the state of Minnesota." This clip subsequently went viral across social media platforms.
The viral video gained new significance as the investigation into Ahmed's center unfolded, particularly amidst a separate, larger fraud scandal that has drawn scrutiny to the local Somali community in Minnesota for several years. Flanagan's record on addressing the broader fraud scandal during her time in office has been a recurring point of criticism.
Reactions to the news of the investigation into Ahmed's center were immediate online. Dustin Grage, a columnist for Townhall, posted on X, "Nimco Ahmed, who stood alongside Peggy Flanagan wearing a hijab, runs an autism center that is now under investigation." He added, "You can’t make this stuff up." Conservative social media personality LibsofTikTok commented, "It just never ends." Paul Mauro, a retired NYPD inspector and Fox News contributor, also reacted, stating, "I can’t even keep up anymore."
A former employee of Milestone Development Center, Grant Morgan, provided a firsthand account of his experience at the facility. Morgan, who worked as a therapist for two months in late 2023, stated he never observed a Qualified Supervising Professional (QSP) or a Board Certified Behavior Analyst (BCBA) supervising any client sessions during his six-day-a-week tenure. He further alleged that many practitioners he worked with appeared unqualified and lacked fundamental knowledge of applied behavior analysis.
Morgan also raised concerns about billing practices, claiming that staff never asked him to write or sign session notes, which are critical for Medicaid billing documentation. He described the treatment methods he observed as ineffective and believed the center failed to provide comprehensive autism care. Additionally, Morgan claimed that some children receiving services did not appear to have autism and flagged what he considered signs of potential billing fraud, though he noted he had no direct role in billing operations himself.
Nimco Ahmed has publicly addressed these allegations, dismissing the scrutiny as "bias" and asserting that Alpha News pursued the story specifically due to her Somali background. She firmly denied operating Milestone without QSP or BCBA oversight, insisting that every child at her center has a documented autism diagnosis. Ahmed also maintained that Milestone Development Center adheres to all state regulations and undergoes regular audits. The state investigations remain ongoing, and both providers' appeals for Medicaid reinstatement are pending.
