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MINNEAPOLIMEDIA NEWS | Minnesota Appeals Court Orders Guilty Verdicts Reinstated in $7.2 Million Medicaid Fraud Case
The October 26 decision reverses a post-verdict acquittal and returns the Promise Health Services case to district court.
MINNEAPOLIS, MN (October 27, 2026). The Minnesota Court of Appeals has reversed a district court’s decision to acquit a Medicaid provider after a jury found him guilty, directing that the jury’s verdicts be reinstated.
The October 26 ruling concerns Abdifatah Abdulkadir Yusuf and Promise Health Services LLC, an agency involved in a case concerning approximately $7.2 million in fraudulent Medicaid payments.
How the Case Reached the Appeals Court
A Hennepin County jury found Yusuf guilty in August 2025 of six counts of aiding and abetting theft by swindle involving more than $35,000.
Afterward, Yusuf sought a judgment of acquittal, arguing that prosecutors had not established beyond a reasonable doubt that he knew about the fraud and intended to assist it. The district court granted that request.
The attorney general’s Medicaid Fraud Control Unit appealed, arguing that the evidence supported the jury’s conclusions.
What the Appellate Judges Decided
The appellate decision examined the circumstantial evidence concerning Yusuf’s knowledge and intent.
The court concluded that the evidence was sufficient to support the verdicts and that the proposed innocent explanation was unreasonable when the circumstances were considered together. Its analysis addressed Yusuf’s involvement in the agency, concealment concerning his brother’s role and the substantial financial benefits he received.
The decision is designated nonprecedential. Its immediate effect is on this case: it reverses the post-verdict acquittal and sends the matter back for reinstatement of the jury’s guilty verdicts. It does not itself announce a prison term.
The Underlying Billing Scheme
According to the attorney general’s account of the trial evidence, Promise claimed to provide home- and community-based services through Minnesota’s Medical Assistance program.
Prosecutors presented evidence of payments for services that were not provided, false or missing supporting documentation, inflated billing and kickbacks to recipients. The attorney general’s office charged Yusuf in June 2024.
The distinction between the jury’s decision and the later acquittal explains the significance of Monday’s ruling. The appeal addressed whether the existing trial record could legally sustain those guilty verdicts, rather than introducing a new set of criminal charges.
The court opinion sets out the controlling disposition. Further district court proceedings will determine the case’s next stage.
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