In a controversial legal decision, Minnesota Judge Sarah West has overturned the $7.2 million Medicaid fraud conviction of Abdifatah Yusuf, 44, and his wife, Lul Ahmed, 41. The couple had previously been found guilty of defrauding state healthcare programs and using the ill-gotten gains to finance a luxurious lifestyle, including the purchase of high-end vehicles and designer clothing. Yusuf and Ahmed operated their home healthcare business, Promise Health, from a mailbox on Central Avenue, eschewing a traditional office setting.
During the trial, prosecutors charged that Yusuf had filed fraudulent Medicaid claims for services that were not provided, transferring over $1 million into personal accounts and withdrawing approximately $387,000 in cash. Investigators tracked expenditures by the couple at upscale retailers such as Coach, Nike, Canada Goose, and Nordstrom. In August 2025, after deliberating for about four hours, a jury convicted Yusuf on six counts of aiding and abetting theft by swindle, confirming that the evidence clearly indicated guilt.
Nevertheless, in a surprising move, Judge West set aside these convictions in mid-November. She reasoned that the case relied heavily on circumstantial evidence and suggested that there could be other reasonable explanations for the financial activities in question. While overturning the verdict, Judge West expressed her concerns about the manner in which the alleged fraud had been perpetrated.
The judge's decision was met with immediate backlash from various state officials and jurors. Minnesota State Representative Kristin Robbins (R), who chairs the House Fraud Prevention and State Oversight Committee, described the ruling as "stunning" and is exploring whether state laws need to be fortified to ensure similar cases are prosecuted effectively in the future.
Attorney General Keith Ellison, a Democrat, has filed an appeal against Judge West's ruling. Ellison denounced the original fraud as "shameful and disgraceful," highlighting that Medicaid funds should serve the needs of vulnerable residents rather than underwrite luxury spending. He further argued that the acquittal might erode public trust in Minnesota's legal system and its ability to hold individuals accountable for defrauding taxpayers.
In contrast, defense attorney Ian Birrell lauded the judge's decision. Speaking to KARE 11, Birrell stated, "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. The Court's decision to enter judgments of acquittal on all charges reflects the fundamental principle that justice requires both fairness and proof."
Minnesota has been grappling with a spate of high-profile fraud cases, including the Feeding Our Futures scandal, which involved the embezzlement of millions of dollars earmarked for COVID-19 relief. These cases have put a spotlight on the difficulties in overseeing organizations and individuals accused of defrauding state-funded programs.
Legal experts have noted that while overturning a jury verdict on appeal is rare in Minnesota, it is allowed under certain circumstances, especially if a judge believes the evidence does not conclusively prove guilt. The current case has reignited discussions about the standards of proof necessary in complex financial crimes and the extent of judicial discretion in reversing convictions.
As the appeal process unfolds, state authorities and the public continue to examine the actions of Yusuf and Ahmed, as well as the wider ramifications of judicial interventions in cases involving significant fraud. Minnesota legislators have suggested they may consider legislative reforms to enhance prosecutorial tools and ensure more robust accountability in future cases.
