Philadelphia 'fraud tourists' plead guilty in $3.5M Minnesota Housing Stabilization scheme
Two Philadelphia men, Anthony Jefferson (37) and Lester Brown (53), pleaded guilty in U.S. District Court to a single count of wire fraud for their roles in a $3.5 million scheme that exploited Minnesota’s Housing Stabilization Services Medicaid program — renting office space for Chozen Runner LLC and Retsel Real Estate LLC, branding themselves “The Housing Guys,” enrolling about 230 beneficiaries by targeting shelters and Section 8 housing, and admitting they used ChatGPT to fabricate service notes and reports; their plea deals contemplate 5–6.5 and 3.5–4.5 year sentences respectively, with both free pending sentencing. Their pleas come amid a broader federal probe that has charged eight defendants tied to multiple provider companies alleging more than $8 million in theft, prompted FBI raids, DHS license suspensions and the eventual shutdown of the HSS program amid continuing investigations.
📌 Key Facts
- Federal prosecutors in the U.S. Attorney’s Office for the District of Minnesota charged eight people with wire fraud for alleged schemes targeting Minnesota’s Housing Stabilization Services (HSS) Medicaid program; the eight named defendants are Moktar Hassan Aden (30), Mustafa Dayib Ali (29), Khalid Ahmed Dayib (26), Abdifitah Mohamud Mohamed (27), Christopher Adesoji Falade (62), Emmanuel Oluwademilade Falade (32), Asad Ahmed Adow (26) and Anwar Ahmed Adow (25) (the Adow defendants are brothers).
- Two Philadelphia men, Anthony Jefferson (37) and Lester Brown (53), pleaded guilty in U.S. District Court to a wire fraud count for their roles in a $3.5 million scheme that exploited HSS; they rented downtown Minneapolis office space for Chozen Runner LLC and Retsel Real Estate LLC, branded themselves “The Housing Guys,” enrolled about 230 beneficiaries (targeting shelters and Section 8 housing), and admitted using ChatGPT to fabricate service notes and reports for insurers and Medicaid auditors.
- Jefferson’s plea agreement contemplates a 5–6.5 year prison sentence and Brown’s a 3.5–4.5 year sentence; both defendants were allowed to remain free pending sentencing.
- Prosecutors say the charged cases reflect a much larger pattern of alleged fraud: the set of charges has been tied to more than $8 million allegedly stolen, a search warrant alleges 14 providers collected about $22 million in 16 months, HSS Medicaid spending rose from $27.7 million in 2021 to $105.3 million in 2024, and the program cost roughly $302 million over five years — concerns that prompted DHS to end the HSS program.
- Investigators allege stolen HSS funds were diverted into personal and business spending, including investments in real estate in Kenya, leases on luxury vehicles (Mercedes‑Benz, BMW) and a Roseville apartment; prosecutors say four suspects pocketed as much as $400,000 each and used a joint American Express Platinum card to charge nearly $500,000.
- DOJ alleges specific misconduct by Liberty Plus LLC (tied to Anwar Adow), including instructions to employees to “bill as much as they could,” incentivizing inflated hours, collecting more than $1.2 million in Medicaid funds for about 200 clients, and diverting large portions to employees, family, vehicle leases and investments.
- Companies identified in reporting as tied to the alleged schemes include Brilliant Minds Services LLC (St. Paul), Leo Human Services LLC (Brooklyn Park), Faladcare Inc. (St. Paul), Liberty Plus LLC (Roseville), and the Jefferson/Brown entities Chozen Runner LLC and Retsel Real Estate LLC; 24hrs Home Care in Blaine (registered to Anwar Adow) received an HCBS license Oct. 1, 2021, was temporarily suspended by DHS on Oct. 10, 2025, and its license revocation became effective Jan. 7, 2026.
- Timeline and enforcement actions: FBI agents executed raids across the Twin Cities metro on July 16; the state shut down the HSS program in August; Acting U.S. Attorney Joseph Thompson says the investigation is ongoing and additional charges are expected.
📊 Relevant Data
Somali Minnesotans, comprising about 1.4% of the state's population, have been charged in the majority of nearly 100 individuals implicated in welfare fraud scandals in Minnesota's social programs from 2020 to 2026.
Somali Welfare Fraud in Minnesota Has Cost American Taxpayers ... — Heritage.org
The poverty rate among Somali-headed households in Minnesota is significantly higher, with 54% receiving food stamps and 73% having at least one member on Medicaid, compared to state averages.
Somali Immigrants in Minnesota — CIS.org
Somali Minnesotans generate at least $500 million in income annually and pay about $67 million in state and local taxes, contributing positively to the economy despite high poverty rates.
Human beings have intrinsic worth — American Experiment
The automated nature of claims processing and the massive size of federal programs like Minnesota's Housing Stabilization Services contributed to fraud risks, leading to the program's termination in October 2025 due to widespread abuse.
'Tip of a very large iceberg,' Feds surge response to Minnesota fraud ... — WCTI12
Somali immigration to Minnesota began in the 1990s as refugees fleeing civil war, facilitated by U.S. refugee resettlement programs, resulting in the largest Somali community in the U.S. with over 80,000 individuals.
How Minnesota became the center of the Somali diaspora — Sahan Journal
In Minnesota's Housing Stabilization Services fraud cases from 2021 to 2026, federal charges have been filed against multiple defendants, with program spending rising from $27.7 million in 2021 to $105.3 million in 2024, much of which is alleged to be fraudulent.
Defendants Charged in First Wave of Housing Stabilization Fraud ... — Justice.gov
📰 Source Timeline (6)
Follow how coverage of this story developed over time
- Two Philadelphia men, Anthony Jefferson (37) and Lester Brown (53), have pleaded guilty in U.S. District Court to a single count of wire fraud each in a $3.5 million scheme that exploited Minnesota’s Housing Stabilization Services (HSS) program.
- Jefferson and Brown rented downtown Minneapolis office space for Chozen Runner LLC and Retsel Real Estate LLC, branded themselves as “The Housing Guys,” and enrolled about 230 beneficiaries by targeting shelters and Section 8 housing.
- Both admitted using ChatGPT to fabricate service notes and reports for insurers and Medicaid auditors; Jefferson’s plea deal contemplates a 5–6.5 year sentence and Brown’s a 3.5–4.5 year sentence, with both allowed to remain free pending sentencing.
- FOX 9 reports HSS Medicaid spending jumped from $27.7M in 2021 to $105.3M in 2024, and reiterates DHS has now ended the program outright because of widespread fraud.
- 24hrs Home Care in Blaine, registered to Housing Stabilization defendant Anwar Adow, received an HCBS license Oct. 1, 2021 and was hit with a temporary immediate suspension by DHS on Oct. 10, 2025 due to his criminal charges.
- DHS states that the HCBS license revocation for 24hrs Home Care becomes effective Jan. 7, 2026, aligning it with the Smart Therapy case.
- The article cites DOJ allegations that Adow, through Liberty Plus LLC in Roseville, told employees to 'bill as much as they could,' incentivized inflated hours, pulled in more than $1.2 million in Medicaid funds for roughly 200 clients, and diverted much of the money to employees, his brother, a Mercedes‑Benz lease and investments.
- One of the eight defendants has pleaded guilty, marking the first guilty plea in the case.
- The plea confirms the federal prosecution is advancing toward resolutions in the HSS fraud scheme.
- Prosecutors allege suspects used stolen funds to invest in real estate in Kenya and lease luxury vehicles (BMW, Mercedes) and a Roseville apartment.
- Four suspects allegedly pocketed up to $400,000 each and used a joint American Express Platinum card to rack up nearly $500,000 in purchases.
- Eight defendants named and ages provided: Moktar Hassan Aden (30), Mustafa Dayib Ali (29), Khalid Ahmed Dayib (26), Abdifitah Mohamud Mohamed (27), Christopher Adesoji Falade (62), Emmanuel Oluwademilade Falade (32), Asad Ahmed Adow (26), and Anwar Ahmed Adow (25); the Adows are brothers.
- Companies tied to the scheme: Brilliant Minds Services LLC (St. Paul), Leo Human Services LLC (Brooklyn Park), Faladcare Inc. (St. Paul), and Liberty Plus LLC (Roseville).
- Amount attributed to this set of charges: more than $8 million allegedly stolen.
- Acting U.S. Attorney Joseph Thompson said the investigation is ongoing and more charges are expected.
- Background details: FBI raids across the metro on July 16; a search warrant states 14 providers collected $22M in 16 months; the state shut down the Housing Stabilization Services program in August; overall program cost $302M over five years, far above initial estimates.
- Specifies the charge as wire fraud brought by the U.S. Attorney's Office for the District of Minnesota.
- Reaffirms the target of the alleged scheme: Minnesota’s Housing Stabilization Services (Medicaid) program.