Minnesota Couple Faces Charges in $860,000 Medical Assistance Fraud Case

A Minnesota couple stands accused of orchestrating an elaborate scheme to defraud public assistance programs of more than $860,000 through false declarations about their income and assets, according to court documents filed Thursday.

Magda Mahmoud Elsagher and her husband, Mohamed Metwalli Elshazli, residents of Spring Lake Park, each face charges of wrongfully obtaining assistance and perjury. Authorities allege the couple, along with their four adult children, received Medical Assistance and Supplemental Nutrition Assistance Program (SNAP) benefits from Anoka County’s Department of Human Services during two periods: March 2020 through February 2021, and again from September to October 2022.

Investigators claim the couple repeatedly misrepresented their financial situation on official forms, declaring under penalty of perjury that no household members were self-employed while concealing significant assets and income streams.

According to the criminal complaint, the couple submitted a medical assistance renewal form in October 2020 indicating Elshazli had no income. They also provided a signed personal statement claiming their sole assets consisted of a checking account containing just $200 and a single vehicle.

The reality, investigators discovered, painted a dramatically different financial picture. Court documents reveal Elshazli was not only self-employed but the sole proprietor of a business with substantial cash flow. Bank records obtained during the investigation showed the business maintained an average balance exceeding $30,600 between June 2018 and May 2024.

Particularly notable were the international wire transfers flowing from the business account, which investigators say totaled more than $2.2 million from September 2021 through July 2025. These financial activities were never disclosed on assistance applications.

“Due to the false reporting and fraudulent filings, an estimated $861,304.03 of Medical Assistance overpayments were made between August 1, 2018, and November 30, 2025,” the complaint states.

The investigation further revealed that Elsagher is the sole owner of their Spring Lake Park residence, purchased in 2011 for $125,000—another asset allegedly concealed from authorities. Additionally, the couple had registered 17 vehicles in their names, most of which were never reported on assistance applications.

Credit card statements obtained by law enforcement exposed lavish spending habits inconsistent with individuals qualifying for public assistance. These included over $54,000 spent at a jewelry store between 2020 and 2024 and more than $7,000 on travel to Egypt in 2019.

This case highlights growing concerns about welfare fraud across the country. Public assistance programs like Medical Assistance—Minnesota’s Medicaid program—are designed as safety nets for low-income residents who cannot afford healthcare coverage. When these systems are exploited, it diverts resources from those genuinely in need and undermines public trust in government assistance programs.

The Minnesota Department of Human Services has been increasing efforts to detect and prevent fraudulent claims in recent years, implementing more sophisticated verification systems and conducting more regular reviews of recipient eligibility.

Welfare fraud cases of this magnitude often involve complex financial investigations, requiring coordination between county human services departments, state agencies, and sometimes federal authorities. The extensive documentation in this case suggests investigators conducted a thorough examination of the couple’s financial records spanning several years.

If convicted, Elsagher and Elshazli each face severe penalties—up to 25 years in prison and a maximum fine of $200,000. The case serves as a reminder of the serious consequences for defrauding public assistance programs.

The couple has not yet entered pleas to the charges, and court records do not indicate if they have retained legal representation. The Anoka County Attorney’s Office is handling the prosecution.