Eight charged in MN Housing Stabilization Services fraud allegedly spent millions on Kenya real estate, luxury cars
Federal prosecutors in Minnesota have charged eight people with wire fraud in an alleged scheme to siphon more than $8 million from the state's Medicaid Housing Stabilization Services program, and one defendant has already pleaded guilty. Authorities say the funds were spent on Kenya real estate, leased luxury vehicles (including BMWs and Mercedes), a Roseville apartment, nearly $500,000 on a joint American Express Platinum card and were funneled through companies such as Brilliant Minds Services LLC, Leo Human Services LLC, Faladcare Inc. and Liberty Plus LLC; the FBI raided sites July 16 and the investigation is ongoing with more charges expected.
📌 Key Facts
- The U.S. Attorney’s Office for the District of Minnesota has charged eight people with wire fraud tied to Minnesota’s Housing Stabilization Services (Medicaid) program.
- Prosecutors allege the scheme siphoned more than $8 million and that stolen funds were used to buy real estate in Kenya, lease luxury vehicles (including BMW and Mercedes), and lease a Roseville apartment.
- Investigators say four suspects individually pocketed as much as $400,000 each and the group used a joint American Express Platinum card that ran up nearly $500,000 in purchases.
- Background: FBI raids across the Twin Cities occurred July 16; a search warrant indicated 14 providers collected $22 million in 16 months; the state shut down the HSS program in August after the program cost about $302 million over five years, far above initial estimates.
- The eight defendants named 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.
- Companies tied to the alleged scheme include Brilliant Minds Services LLC (St. Paul), Leo Human Services LLC (Brooklyn Park), Faladcare Inc. (St. Paul) and Liberty Plus LLC (Roseville).
- Acting U.S. Attorney Joseph Thompson said the investigation is ongoing and additional charges are expected.
- On Oct. 23, 2025, one of the eight defendants entered the first guilty plea in the case, confirming the federal prosecution is advancing toward resolutions.
📰 Sources (4)
First of 8 defendants pleads guilty to defrauding Minnesota housing program to help the vulnerable
New information:
- 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.
Feds: Housing fraud suspects spent stolen tax money on real estate in Kenya, luxury cars
New information:
- 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.
U.S. attorney charges eight with wire fraud in Minnesota housing stabilization program
New information:
- 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.