State fraud investigators have opened formal probes into two Minnesota autism therapy providers, and one of them is run by a woman who has spent nearly a quarter-century as a close friend of Democratic Senate candidate Peggy Flanagan.
Milestone Development Center and Spectrum Therapy Center both sit under active investigation by the Minnesota Department of Human Services.
Nimco Ahmed heads Milestone as its chief executive officer. Alpha News broke the story first, and the state agency confirmed the probe to Fox News Digital afterward.
Department officials chose their words carefully when addressing the case publicly.
“These agencies are on our radar,” a spokesperson said. The spokesperson continued, “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.”
The state did reveal one major consequence for both providers already.
“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 process to verify that agencies have required credentials and are otherwise compliant with state and federal regulations. Both providers have appealed their termination.”
Neither agency has secured reinstatement into Medicaid since those terminations took effect.
Ahmed’s business now sits at the center of public attention largely because of her personal history with Flanagan.
The two women have been friends for almost 25 years, and Ahmed has built a long career as an activist within Minnesota’s Democratic–Farmer–Labor Party.
That friendship became visible to the public through a video filmed for Somali TV.
Flanagan appeared in the footage wearing a hijab and declared, “The Somali community is part of the fabric of the state of Minnesota.” Ahmed stood beside her.
The clip went viral across social media as a separate, massive fraud scandal involving the local Somali community continued to unfold.
Ahmed was born in Somalia and is listed online as Milestone’s CEO.
Her presence in that widely shared video has taken on new significance now that her own business faces a fraud probe of its own.
Flanagan has held the office of lieutenant governor since 2019.
Her record on the broader fraud scandal has drawn scrutiny for years, with critics repeatedly asking what steps she took to confront it during her time in office.
News of the investigation into Ahmed’s center set off an immediate reaction online.
Townhall columnist Dustin Grage wrote on X, “Nimco Ahmed, who stood alongside Peggy Flanagan wearing a hijab, runs an autism center that is now under investigation.” He followed with, “You can’t make this stuff up.”
LibsofTikTok, a conservative social media personality, offered a shorter take. “It just never ends,” the post stated.
Paul Mauro, a retired NYPD inspector who now contributes to Fox News, posted his own response. “I can’t even keep up anymore,” he wrote.
A former Milestone employee has provided the most detailed firsthand account of conditions inside the center.
Grant Morgan worked there as a therapist for two months in late 2023, spending six days a week working directly with clients.
Morgan told Alpha News he never saw a Qualified Supervising Professional or a Board Certified Behavior Analyst supervise any of the sessions during his time there.
He also said many of the practitioners he worked alongside seemed unqualified and lacked basic knowledge of applied behavior analysis.
Billing practices raised additional concerns for Morgan. He said staff never asked him to write or sign session notes, even though such documentation forms the backbone of how providers bill Medicaid for services.
Morgan called the treatment methods he observed ineffective and said the center failed to deliver comprehensive autism care.
He claimed some children receiving services did not appear to actually have autism, and he flagged what he considered signs of potential billing fraud, though he said he had no direct role in billing operations himself.
Ahmed answered the allegations when Alpha News brought them to her. She dismissed the scrutiny as “bias” and argued the outlet pursued the story specifically because of her Somali background.
She firmly denied that Milestone operated without QSP or BCBA oversight. Every child at her center, she said, carries a documented autism diagnosis.
Ahmed also insisted that Milestone complies with all state regulations and submits to audits on a regular basis.
