8 charged in HSS Medicaid scam
Joe Thompson, the Acting U.S. Attorney for Minnesota, announced eight (8) criminal charges in the massive fraud involving the state’s Housing Stabilization Services program (HSS). Over the past 4 1/2 years, HSS has paid out more than $300 million to vendors.
Thompson held a press conference this morning at the federal building in downtown Minneapolis. Our man Bill Walsh was there in person.
The eight charged were involved in different HSS vendor companies. They were all indicted on felony wire fraud counts.
Brilliant Minds Services LLC:
- Moktar Hassan Aden, age 30
- Mustafa Dayib Ali, age 29
- Khalid Ahmed Dayib, age 26
- Abdifitah Mohamud Mohamed, age 27
Brilliant Minds and a related company claimed more than $2.5 million from the HSS program, according to the indictment.
Faladcare Inc.:
- Christopher Adesoji Falade, age 62
- Emmanuel Oluwademilade Falade, age 32
Faladcare took $2.2 million out of the HSS program, according to the indictment.
Leo Human Services LLC:
- Asad Ahmed Adow, age 26
Leo Human Services took $2.7 million out of the program. Swag included a 2024 BMW X4.
Liberty Plus LLC:
- Anwar Ahmed Adow, age 25
Liberty Plus took $1.2 million out of the program. Swag included a 2023 Mercedes Benz CLA.
The first six of these defendants are expected to make their initial court appearances this afternoon. The latter two, who are brothers, are expected to plead guilty in the near future.
Some great quotes from the press conference this morning:
- Riddled with fraud
- Just the first round of indictments
- Minnesota is drowning in fraud
- The level of fraud in these programs is staggering
- The fraud has overtaken the legitimate services
- We cannot prosecute our way out of this problem
- It overwhelms the system
- A systematic and wholesale attack on our state government programs
- Fraud is the business model
The HSS program was meant to provide counseling services for the homeless and seniors. It is operated by the state’s Department of Human Services (DHS). The agency is in the process of shutting down the fraud-ridden program and hopes to have things wrapped up by late October. DHS Temporary Commissioner Shireen Gandhi made that announcement yesterday in testimony before the state House of Representatives Fraud Prevention and State Agency Oversight committee.
The epicenter of the fraud was this University Avenue office building in St. Paul.
The U.S. Attorney’s office issued a press release that can be read here. The full 22-minute Joe Thompson press conference can be viewed on YouTube here.
It was also announced yesterday that the DHS Assistant Commissioner, Eric Grumdahl, in charge of the HSS program until Tuesday, no longer works for state government.
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