District of Minnesota | Defendants Charged in First Wave of Housing Stabilization Fraud Instances

MINNEAPOLIS – Eight defendants have been federally charged with wire fraud for his or her roles in an enormous housing stabilization fraud scheme, introduced Acting U.S. Attorney Joseph H. Thompson.

“Today we announce the first wave of charges in a massive fraud in Minnesota’s housing stabilization program,” stated Acting U.S. Attorney Joseph H. Thompson.  “I want to be clear on the scope of the crisis.  What we see are schemes stacked upon schemes, draining resources meant for those in need.  It feels never ending.  I have spent my career as a fraud prosecutor and the depth of the fraud in Minnesota takes my breath away.  The fraud must be stopped.”

The Scheme to Defraud the Housing Stabilization Services Program

As set forth within the charging paperwork, the defendants devised and carried out schemes to defraud federally funded well being care advantages collected inside Minnesota’s Housing Stability Services Program. The HSS Program dates again to July 2022, when Minnesota grew to become the primary state within the nation to supply Medicaid protection for Housing Stabilization Services. The Program was designed to assist folks with disabilities, together with seniors and folks with psychological sicknesses and substance use issues, discover and preserve housing. Rather than present such assist, the defendants obtained and misappropriated tens of millions of {dollars} in program funds that have been supposed as reimbursements for providers supplied to these folks.

The Program permitted reimbursements for 4 principal sorts of providers: (1) housing session; (2) housing transition providers; (3) housing sustaining providers; and (4) transferring bills.

By design, the Program had low limitations to entry for brand new suppliers and for beneficiaries.  The Program additionally had minimal necessities for reimbursement.  The HSS Program’s low limitations to entry and minimal information necessities for reimbursement mixed to make the Program inclined to fraud.

Before the Program’s inaugural yr, the Program was predicted to price about $2.6 million yearly.  That proved to be inaccurate.  In 2021 alone, the Program paid out greater than $21 million in claims.  That determine ballooned within the following years: $42 million in 2022, $74 million in 2023, $104 million in 2024. In simply the primary six months of 2025, the Program paid out one other $61 million.

A federal investigation revealed that many Program suppliers defrauded the system.  These suppliers acquired the names of Program-eligible beneficiaries from services like dependancy therapy facilities.  They then used these people’ info to submit inflated and faux reimbursement claims.  In this vogue, the suppliers acquired substantial pay-outs of taxpayer cash to which they weren’t entitled.  They used these ill-gotten positive aspects for their very own enrichment.

United States v. Moktar Aden et al., 25-cr-349 (MJD/JFD)

(Brilliant Minds Services LLC)

 

• Defendant Moktar Hassan Aden, age 30
• Defendant Mustafa Dayib Ali, age 29
• Defendant Khalid Ahmed Dayib, age 26
• Defendant Abdifitah Mohamud Mohamed, age 27

In April 2022, Aden and his co-defendants, Dayib and Ali accomplished paperwork to enroll Aden’s firm, known as Brilliant Minds Services LLC, as an HSS Provider. With Abdifitah Mohamed, these defendants then presupposed to service people in want by Brilliant Minds from an workplace suite within the Griggs-Midway Building in St. Paul, Minnesota.  Mohamed additionally operated one other program supplier known as Foundation First Services LLC, which has workplaces in the identical constructing.  Through Foundation First, Mohamed claimed to offer Program-reimbursable session providers to different HSS suppliers, together with Brilliant Minds.

The defendants, together with their staff at Brilliant Minds, have been supposed to offer housing consulting, transitioning, and sustaining providers to qualifying folks in want. Instead, the defendants brought about the submission of faux and inflated payments and supplied solely a fraction of their claimed complete.

In all, between roughly September 2022 and April 2025, Brilliant Minds submitted reimbursement claims totaling about $2.3 million.  From such claims, in 2024, Brilliant Minds LLC was one of many ten highest-billing HSS suppliers state-wide.

The defendants diverted a few of these taxpayer {dollars} to their conspirators, they usually saved a lot for themselves.  From about April 2023 by about May 2025, every of the defendants personally pocketed between about $300,000 and $400,000 from Brilliant Minds.  The defendants additionally shared a Platinum American Express bank card, on which they accrued almost half one million {dollars} in expenses to fund and improve their life.  The defendants paid these expenses utilizing Brilliant Mind’s firm accounts.

United States v. Christopher Falade, et al., 25-cr-351 (JMB/DJF)

(Faladcare Inc.)

 

• Defendant Christopher Adesoji Falade, age 62
• Defendant Emmanuel Oluwademilade Falade, age 32

Christopher Falade and his son, Emmanuel Falade, labored collectively to run Faladcare Inc. as a supplier within the HSS Program.

The Falades, together with their staff at Faladcare, have been supposed to offer housing consulting, transitioning, and sustaining providers to qualifying folks in want.

Instead, over the course of years, the Falades and their conspirators created and submitted Program reimbursement claims that have been inflated and fraudulent. By doing so, Faladcare acquired Program funds far exceeding the HSS providers they’d truly supplied. In all, the Falades claimed to service about 100 completely different beneficiaries and for such providers claimed to be entitled to over $2.2 million.  The Falades diverted a lot of their fraud proceeds to their conspirators, together with to their Faladcare staff.

United States v. Asad Ahmed Adow, 25-cr-354 (ADM)

(Leo Human Services LLC)

 

• Defendant Asad Ahmed Adow, age 26

Asad Adow was the proprietor and principal of Leo Human Services LLC, an organization based mostly out of a enterprise suite in Brooklyn Park, Minnesota. 

Adow operated Leo as an HSS Provider from a residence in Blaine, Minnesota and a enterprise suite in Brooklyn Park, Minnesota.

Asad Adow directed his staff at Leo Human Services to invoice as a lot as they might.  At the identical time, Adow made clear to these staff that he wouldn’t scrutinize the purported billable hours his staff submitted.  In this manner, Asad Adow incentivized his staff, who have been paid hourly wages, to inflate their hours.  As the corporate proprietor and principal, Asad Adow made extra money when his staff overrepresented their billings—which Asad Adow then submitted for Program reimbursement.

Asad Adow additionally skilled his staff at Leo to create notes detailing the purported providers they supplied.  The HSS Program doesn’t require suppliers to submit such notes to obtain reimbursements.  However, Asad Adow directed his staff to create service notes in order that the corporate would have them in case DHS ever carried out an audit.  Once once more, Asad Adow knew that his staff have been manufacturing notes that falsely represented their having supplied Program providers.

Ultimately, based mostly on inflated and fraudulent claims, Leo Human Services acquired about $2.7 million in Program funds based mostly on the corporate’s claims to have supplied providers to about 250 beneficiaries.

Asad Adow diverted a lot of these taxpayer {dollars} to his conspirators, together with his staff at Leo and his brother, Anwar Adow.  Asad Adow additionally spent proceeds from his scheme to spend money on actual property in Kenya, to lease an house in Roseville, Minnesota and a 2024 BMW X4, and to fund his life-style.

United States v. Anwar Ahmed Adow, 25-cr-353 (PAM)

(Liberty Plus LLC)

 

• Defendant Anwar Ahmed Adow, age 25

Anwar Adow was the proprietor and principal of Liberty Plus LLC, an organization based mostly out of a enterprise suite in Roseville, Minnesota.  In April 2024, Anwar Adow utilized to be an HSS supplier.  Anwar Adow thereafter presupposed to service people in want by Liberty from a enterprise suite in Roseville, Minnesota.

Anwar Adow directed his staff at Liberty Plus to invoice as a lot as they might.  At the identical time, Anwar Adow made clear to these staff that he wouldn’t scrutinize the purported billable hours his staff submitted to him.  In this manner, Anwar Adow incentivized his staff, who have been paid hourly wages, to inflate their hours.  As the corporate proprietor and principal, Anwar Adow made extra money when his staff overrepresented their billings—which Anwar Adow then submitted for Program reimbursement.

Ultimately, based mostly on inflated and fraudulent claims, Liberty Plus acquired greater than $1.2 million in Medicaid funds for providers purportedly supplied to roughly 200 beneficiaries.

Anwar Adow diverted a lot of these taxpayer {dollars} to his conspirators, together with his staff at Liberty and his brother, Asad Adow. Anwar Adow additionally spent proceeds from his scheme to lease a 2023 Mercedes-Benz CLA, to make investments, and to fund his life-style.

“Fraud in the Housing Stabilization Services program not only drains money from hardworking taxpayers, it also deprives vulnerable populations of resources to maintain safe housing,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis.  “Exploiting this program undermines the financial and physical security of the community amid a housing and addiction crisis.  The FBI is relentless in working with our law enforcement partners to root out this fraud and prosecute those who enrich themselves at the expense of the community.”

“The charges filed today represent another big blow to organized program fraud in Minnesota,” stated Adam Jobes, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “The Minnesota Housing Stabilization Service program was supposed to be a groundbreaking resource to provide stability, assistance, and dignity to seniors and individuals with disabilities. Instead, program funds were diverted to the pockets of greedy opportunists.  IRS-CI is proud to partner with our federal and state agencies in investigations like these and will continue to provide our expertise and resources to fight back against those who have chosen to make their living exploiting some of our most vulnerable citizens.  The public has the right to expect their hard-earned tax dollars are being used judiciously.”

“The fraud detailed in the criminal charges announced today reflects a calculated effort on the part of the defendants to significantly exploit a program designed to serve vulnerable populations and taxpayers at large” stated Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General.  “Our agency remains committed to working together with our federal and state law enforcement partners to identify and bring to justice those who defraud our nation’s healthcare programs.”

“Funding provided through Housing Stabilization Services is intended to help Minnesotans achieve a stable, housed future.  When criminals selfishly defraud these programs they are not only committing a crime, but they are depriving others of services that can be life-changing, and defrauding all taxpaying Minnesotans,” Minnesota Bureau of Criminal Apprehension Superintendent Drew Evans stated.

This case is the results of an investigation carried out by the Federal Bureau of Investigation, Health and Human Services, Office of Inspector General, and the Internal Revenue Service – Criminal Investigation, with help from the Bureau of Criminal Apprehension, the Attorney General’s Medicaid Fraud Control Unit, and the United States Postal Inspection Service. 

Acting U.S. Attorney Joseph H. Thompson and Assistant U.S. Attorney Daniel W. Bobier are prosecuting the case.

An indictment is merely an allegation, and the defendants are presumed harmless till confirmed responsible past an affordable doubt in a courtroom of regulation.