Federal prosecutors in Minnesota have charged eight individuals in a brazen wire fraud scheme that siphoned $8.4 million from the state’s Housing Stabilization Services program, a Medicaid-funded initiative meant to aid vulnerable adults with housing needs. The announcement, made by Acting U.S. Attorney Joseph H. Thompson on September 18, 2025, marks the first wave of indictments in what authorities describe as a “massive fraud” exploiting the program’s low barriers to entry.
The defendants—Moktar Hass Aden, Mustafa Dayib Ali, Khalid Ahmed Dayib, Abdifitah Mohamud Mohamed, Christopher Adesoji Falade, Emmanuel Oluwademilade Falade, Asad Ahmed Adow, and Anwar Ahmed Adow—allegedly targeted clients transitioning from rehab facilities or shelters. Operating through companies like Liberty Plus LLC and Leo Human Services, they billed for nonexistent services such as housing consultations and transitions, inflating claims for hundreds of beneficiaries. Liberty Plus alone netted over $1.2 million for purported aid to 200 clients, while Leo received $2.7 million for 250. Funds were diverted to luxury cars, real estate in Kenya, and personal luxuries, per court documents.
Thompson decried the betrayal, stating, “Our system of trust-but-verify no longer works.” The program, launched in 2022 as the nation’s first to cover housing via Medicaid, ballooned from a projected $2.6 million annually to $302 million over 4.5 years—much of it fraudulent. Minnesota has since defunded it, assisting the probe that uncovered similar schemes among hundreds of providers.
This scandal joins a string of Medicaid frauds in the state, including the $250 million Feeding Our Future case and $400 million in autism program thefts. Each defendant faces up to 20 years if convicted, with more charges expected. The case exposes vulnerabilities in public aid, prompting calls for stricter oversight amid economic pressures.
