• Hennepin County judge overturns conviction citing insufficient direct evidence linking defendant
• Jury foreperson says decision to convict was clear based on state’s evidence
• Attorney General Keith Ellison files appeal to restore guilty verdict

MINNEAPOLIS, MN (TDR) — A Hennepin County judge has sparked outrage after overturning a jury’s unanimous guilty verdict against a Blaine man convicted of orchestrating a $7.2 million Medicaid fraud scheme through his home healthcare company. Judge Sarah West issued a judgment of acquittal in November, effectively erasing the August conviction of Abdifatah Yusuf and freeing him from criminal liability despite jurors finding him guilty on all six counts of aiding and abetting theft by swindle.

Promise Health Services Operated From Mailbox Address

The case centered around Yusuf’s company, Promise Health Services LLC, which claimed to provide home and community based services to Medicaid recipients across Minnesota. Investigators discovered the business lacked any physical office space and operated for years out of a mailbox at a Central Avenue address where multiple other home healthcare companies were also supposedly located. The Minnesota Attorney General’s Office charged Yusuf in June 2024 after determining his agency billed Medicaid for services that were never provided and submitted claims supported by falsified or nonexistent documentation.

Yusuf and his wife, Lul Ahmed, allegedly funneled the stolen taxpayer funds into a lavish lifestyle that included luxury purchases at designer retailers. Court documents revealed Yusuf directed over $1 million from the Promise business account into his personal account and withdrew more than $387,000 in cash.

Prosecutors Detail Extravagant Spending Spree

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Evidence presented at trial showed the couple spent more than $22,000 at furniture stores despite lacking any physical office space, over $42,000 at luxury automotive dealerships, and approximately $80,000 at high-end clothing retailers including Coach, Canada Goose, Michael Kors, Nike, and Nordstrom. Attorney General Keith Ellison condemned the scheme following the August conviction.

“Stealing money meant for poor people’s healthcare and using it to buy luxury cars and designer clothes is as shameful and disgraceful as it gets. Minnesotans believe in helping our neighbors, but we have no patience for fraudsters like Abdifatah Yusuf who abuse that generosity to enrich themselves.”

The jury deliberated for approximately four hours before returning guilty verdicts on all counts, also finding multiple aggravating factors that supported an upward departure from Minnesota sentencing guidelines.

Judge West Rules Evidence Insufficient Despite Jury Conviction

In her 12-page ruling, Judge West acknowledged being troubled by how fraud was perpetuated at Promise Health but concluded the state’s case relied too heavily on circumstantial evidence. She ruled prosecutors failed to eliminate other reasonable inferences that were inconsistent with Yusuf’s guilt, suggesting the fraudulent activity may have been conducted by his brother, Mohamed Yusuf, without the defendant’s direct knowledge or involvement.

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Jury foreperson Ben Walfoort expressed disbelief at the decision, telling reporters the conviction was straightforward. He stated the deliberation was not difficult and that the evidence presented by the state proved guilt beyond a reasonable doubt. Another juror echoed similar sentiments, describing shock at the verdict being overturned after witnessing what they characterized as obvious guilt based on the evidence.

Attorney General Files Appeal to Restore Conviction

Defense attorney Ian Birrell praised Judge West’s ruling, maintaining his client was wrongfully accused from the beginning. The Attorney General’s Office has filed an appeal seeking to restore the jury’s verdict, which is permitted because the judgment overturned the will of the jury rather than resulting from prosecutorial error.

The controversial decision comes amid heightened scrutiny of welfare fraud cases in Minnesota, including the massive Feeding Our Future scheme involving more than $250 million in stolen federal nutrition funds. State Representative Kristin Robbins expressed stunned disbelief at the ruling, emphasizing the need to strengthen state law to ensure successful prosecutions when juries determine guilt.

Will the appellate court restore the jury’s verdict, or has Minnesota’s judicial system created a roadmap for future fraud defendants to escape accountability?

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