FOUR MEN PLEAD GUILTY TO $2M MINNESOTA MEDICAID FRAUD

The following information was released by the U.S. Department of Justice:

Four Minnesota men pleaded guilty to defrauding Minnesota's Housing Stabilization Services (HSS) program out of approximately $2.2 million and concealing the scheme by using artificial intelligence to create fake records when questioned by insurance companies.

This case is part of the ongoing collaboration between the U.S. Attorney's Office for the District of Minnesota and the Health Care Fraud Strike Force to combat prolific fraud on government programs in Minnesota. It also highlights a burgeoning trend of fraudsters using artificial intelligence to further a fraud scheme targeting health care programs in Minnesota and around the country.

"These defendants corruptly exploited vulnerable people and a vulnerable program to enrich themselves," said Assistant Attorney General Colin M. McDonald of the Justice Department's National Fraud Enforcement Division. "Taxpayer dollars designed to provide shelter and support for the homeless and needy instead went to the pockets of these men. They have now admitted their fraudulent conduct and will face justice for their crimes. In the meantime, our work to stamp out fraud in Minnesota will continue in abandon."

"Medicaid fraud is a serious offense with real consequences. These defendants stole funds intended to support vulnerable Minnesotans who rely on housing and recovery services. Their guilty pleas underscore my office's commitment to holding accountable those who exploit public programs," said United States Attorney for the District of Minnesota Daniel N. Rosen.

According to court documents, Moktar Hassan Aden, 31, Mustafa Dayib Ali, 29, Khalid Ahmed Dayib, 26, and Abdifitah Mohamud Mohamed, 27, all of the Twin Cities area, set up Brilliant Minds Services LLC in the notorious Griggs-Midway Building in St. Paul, Minnesota, and enrolled the business as a Medicaid program provider. They promised to help people with disabilities including seniors and people with mental illnesses and substance use disorders find and maintain housing through the State's now-defunct HSS program. Instead, they submitted thousands of HSS claims to Medicaid for services that were never provided or significantly inflated the claims for higher reimbursements.

Griggs-Midway Building in St. Paul, Minnesota

The defendants, together, signed up approximately 350 people for HSS and then billed the program despite doing nothing to assist these Medicaid recipients. When asked to provide supporting documentation for their claims, the defendants fabricated records using ChatGPT in an attempt to conceal their theft. In total, from April 2022 through April 2025, the defendants stole approximately $2.2 million from Minnesota Medicaid for services they fraudulently claimed to have provided to these 350 Medicaid recipients.

In separate hearings held between July 7 and July 23, 2026, the defendants each pleaded guilty to one count of wire fraud. They each face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing dates have not yet been set by the Court.

FBI, the U.S. Internal Revenue Service, Criminal Investigation, and the U.S. Department of Health and Human Services, Office of Inspector General are investigating the case.

Trial Attorney Raymond E. Beckering III of the Criminal Division's Fraud Section and Assistant U.S. Attorney Matthew Murphy for the District of Minnesota are prosecuting the case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

The Department of Justice's Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare and Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.