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Judge Acquits Minneapolis Business Owner in $7.2 Million Medicaid Fraud Case, Igniting Appeals and Public Backlash

Minneapolis, MN – December 29, 2025 – In a stunning reversal, a Hennepin County judge has overturned a jury’s unanimous conviction of a local business owner accused of defrauding Medicaid out of $7.2 million, citing insufficient evidence of intent. The decision has drawn sharp criticism from legal experts, public figures, and Minnesota’s attorney general, who has vowed to appeal.

Yusuf, the owner of Promise Health Services, was convicted in August 2025 on six felony counts related to billing Medicaid for fictitious home healthcare services. Prosecutors alleged that the scheme operated out of a simple Minneapolis mailbox, with the illicit funds funneled into extravagant purchases, including luxury vehicles, high-end designer clothing, and more than $387,000 in cash withdrawals. The jury’s verdict followed a trial that highlighted what authorities described as a blatant exploitation of the state’s healthcare system.

However, in a post-trial ruling issued in November, Judge Sarah West acquitted Yusuf, arguing that the evidence presented was largely circumstantial and failed to prove beyond a reasonable doubt that he had knowledge of or intent to commit the fraud. West suggested that Yusuf may have been an “absentee owner,” with his brother potentially handling the billing operations. This rare judicial intervention—where a judge sets aside a jury’s guilty verdict—has raised eyebrows in legal circles, as such actions are typically reserved for cases involving clear procedural errors or overwhelming new evidence.

Minnesota Attorney General Keith Ellison swiftly announced an appeal, calling the acquittal “a setback for accountability in our healthcare system.” In a statement released four hours ago, Ellison emphasized the need to protect taxpayer dollars and vulnerable Medicaid recipients. “We presented a strong case based on solid evidence, and we believe the jury got it right,” he said. “This decision undermines public trust, and we’ll fight to restore it.”

The ruling has sparked widespread outrage, particularly on social media platforms. Tech mogul Elon Musk, known for his vocal commentary on justice issues, weighed in with a post on X (formerly Twitter), labeling the acquittal “absurd” and questioning the integrity of the judicial process. Musk’s comments, which garnered millions of views, amplified calls for greater transparency in fraud cases involving public funds. Other critics, including advocacy groups for healthcare reform, have echoed these sentiments, arguing that the decision sets a dangerous precedent for white-collar crimes.

Promise Health Services, which purported to provide in-home care for low-income and disabled individuals, has since shuttered amid the scandal. Investigators claim the company never delivered the billed services, instead using the mailbox as a front to submit false claims. The $7.2 million loss to Medicaid represents one of the largest fraud cases in Hennepin County’s recent history, fueling debates over oversight in Minnesota’s expanding healthcare programs.

As the appeal process unfolds, legal analysts predict a protracted battle that could reach the state’s Supreme Court. For now, Yusuf remains free, with no immediate comment from his legal team. The case continues to highlight tensions between jury decisions and judicial discretion, leaving many to question the balance of justice in complex fraud prosecutions.

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  1. MsEmma B December 29, 2025

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