Eight defendants have been federally charged with wire fraud for their roles in a housing stabilization fraud scheme, Acting U.S. Attorney Joseph H. Thompson said.
Court documents say the defendants defrauded federally funded health care benefits collected within Minnesota’s Housing Stability Services Program.
The program dates back to July 2022, when Minnesota became the first state in the country to offer Medicaid coverage for Housing Stabilization Services. The Program was designed to help people with disabilities, including seniors and people with mental illnesses and substance use disorders, find and maintain housing. But instead, the defendants stole millions of dollars in that were intended as reimbursements for services provided to those people.
“Today we announce the first wave of charges in a massive fraud in Minnesota’s housing stabilization program,” said 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 program permitted reimbursements for four principal kinds of services: (1) housing consultation; (2) housing transition services; (3) housing sustaining services; and (4) moving expenses.
The program had low barriers to entry for new providers and for beneficiaries. It also had minimal requirements for reimbursement, which made it susceptible to fraud.
The program was supposed to cost $2.6 million annually. But the state paid more than $21 million in claims in 2021, then $42 million in 2022, $74 million in 2023, $104 million in 2024. In just the first six months of 2025, the Program paid out another $61 million.
A federal investigation revealed that many Program providers defrauded the system. These providers acquired the names of Program-eligible beneficiaries from facilities like addiction treatment centers. They then used those individuals’ information to submit inflated and fake reimbursement claims. In this fashion, the providers acquired substantial pay-outs of taxpayer money to which they were not entitled. They used those ill-gotten gains for their own enrichment.
This includes
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 enrolled Brilliant Minds Services LLC, as a provider. With Abdifitah Mohamed, those defendants then purported to service individuals in need through Brilliant Minds from an office suite in the Griggs-Midway Building in St. Paul, Minnesota. Mohamed also operated another program provider called Foundation First Services LLC, which has offices in the same building. Through Foundation First, Mohamed claimed to provide Program-reimbursable consultation services to other HSS providers, including Brilliant Minds.
The defendants, along with their employees at Brilliant Minds, were supposed to provide housing consulting, transitioning, and sustaining services to qualifying people in need. Instead, the defendants caused the submission of fake and inflated bills and provided only a fraction of their claimed total.
In all, between approximately 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 the ten highest-billing HSS providers state-wide.
The defendants diverted some of those taxpayer dollars to their conspirators, and they kept much for themselves. From about April 2023 through about May 2025, each of the defendants personally pocketed between about $300,000 and $400,000 from Brilliant Minds. The defendants also shared a Platinum American Express credit card, on which they accrued nearly half a million dollars in charges to fund and enhance their lifestyles. The defendants paid those charges using Brilliant Mind’s company accounts.
Faladcare Inc.
Defendant Christopher Adesoji Falade, age 62
Defendant Emmanuel Oluwademilade Falade, age 32
Christopher Falade and his son, Emmanuel Falade, worked together to run Faladcare Inc. as a provider in thep rogram.
The Falades, along with their employees at Faladcare, were supposed to provide housing consulting, transitioning, and sustaining services to qualifying people in need.
Instead, the Falades and their conspirators created and submitted reimbursement claims that were inflated and fraudulent. In all, the Falades claimed to service about 100 different beneficiaries and for such services claimed to be entitled to over $2.2 million. The Falades diverted much of their fraud proceeds to their conspirators, including to their Faladcare employees.
Leo Human Services LLC
Defendant Asad Ahmed Adow, age 26
Asad Adow was the owner and principal of Leo Human Services LLC, a company based out of a business suite in Brooklyn Park, Minnesota. Adow operated Leo as a provider from a residence in Blaine, Minnesota and a business suite in Brooklyn Park, Minnesota.
Asad Adow directed his employees at Leo Human Services to bill as much as they could. At the same time, Adow made clear to those employees that he would not scrutinize the purported billable hours his employees submitted. Adow incentivized his employees to inflate their hours so he could submit them for reimbursement.
Ultimately, based on inflated and fraudulent claims, Leo Human Services received about $2.7 million in Program funds based on the company’s claims to have provided services to about 250 beneficiaries.
Asad Adow diverted much of those taxpayer dollars to his conspirators, including his employees at Leo and his brother, Anwar Adow. Asad Adow also spent proceeds from his scheme to invest in real estate in Kenya, to lease an apartment in Roseville, Minnesota and a 2024 BMW X4, and to fund his lifestyle.
Liberty Plus LLC
Defendant Anwar Ahmed Adow, age 25
Anwar Adow was the owner and principal of Liberty Plus LLC, a company based out of a business suite in Roseville, Minnesota. In April 2024, Anwar Adow applied to be an provider. Anwar Adow thereafter purported to service individuals in need through Liberty from a business suite in Roseville, Minnesota.
Anwar Adow directed his employees at Liberty Plus to bill as much as they could. At the same time, Anwar Adow made clear to those employees that he would not scrutinize the purported billable hours his employees submitted to him. As the company owner and principal, Anwar Adow made more money when his employees overrepresented their billings—which Anwar Adow then submitted for reimbursement.
Ultimately, based on inflated and fraudulent claims, Liberty Plus received more than $1.2 million in Medicaid funds for services purportedly provided to approximately 200 beneficiaries.
Anwar Adow diverted much of those taxpayer dollars to his conspirators, including his employees at Liberty and his brother, Asad Adow. Anwar Adow also spent proceeds from his scheme to lease a 2023 Mercedes-Benz CLA, to make investments, and to fund his lifestyle.
“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.”
This case is the result of an investigation conducted by the Federal Bureau of Investigation, Health and Human Services, Office of Inspector General, and the Internal Revenue Service – Criminal Investigation, with assistance from the Bureau of Criminal Apprehension, the Attorney General’s Medicaid Fraud Control Unit, and the United States Postal Inspection Service.
“The charges filed today represent another big blow to organized program fraud in Minnesota,” said 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.”
Acting U.S. Attorney Joseph H. Thompson and Assistant U.S. Attorney Daniel W. Bobier are prosecuting the case.