Eight charged in Housing Stabilization fraud; DHS suspends Liberty Plus HCBS license tied to defendant Anwar Adow
Eight people were federally charged with wire fraud for allegedly stealing millions from Minnesota’s Medicaid Housing Stabilization Services program — prosecutors say the charges in this set total more than $8 million, one defendant has pleaded guilty, and investigators executed raids in July as the program’s costs ballooned to $302 million over five years. Authorities allege the conspirators diverted funds into real estate in Kenya, luxury cars and personal expenses through companies including Liberty Plus LLC, and Minnesota DHS has suspended and will revoke an HCBS license tied to defendant Anwar Adow after alleging he directed inflated billing and diverted about $1.2 million for roughly 200 clients.
📌 Key Facts
- The U.S. Attorney's Office for the District of Minnesota charged eight people with wire fraud for allegedly exploiting Minnesota’s Housing Stabilization Services (Medicaid) program; 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.
- Prosecutors say more than $8 million is attributable to the charges in this indictment; a search warrant alleges 14 providers collected $22 million in 16 months, the overall Housing Stabilization program cost about $302 million over five years, the state shut down the program in August, and FBI raids took place across the metro on July 16.
- Alleged misuse of funds includes investments in real estate in Kenya, leasing luxury vehicles (including Mercedes and BMW), renting a Roseville apartment, and substantial personal spending; prosecutors say four suspects allegedly pocketed up to $400,000 each and a joint American Express Platinum card showed nearly $500,000 in purchases.
- The DOJ alleges that Anwar Adow, through Liberty Plus LLC (Roseville), instructed employees to 'bill as much as they could,' incentivized inflated hours, and pulled in more than $1.2 million in Medicaid funds for roughly 200 clients, diverting much of the money to employees, his brother, a Mercedes‑Benz lease and investments.
- 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).
- Minnesota DHS suspended the HCBS license of 24hrs Home Care in Blaine, a provider registered to defendant Anwar Adow; the license was originally issued Oct. 1, 2021, hit with a temporary immediate suspension on Oct. 10, 2025, and DHS set the revocation to become effective Jan. 7, 2026.
- One of the eight defendants has pleaded guilty — the first guilty plea in the case — and Acting U.S. Attorney Joseph Thompson said the federal investigation is ongoing and more charges are expected.
📊 Relevant Data
The Somali population in Minnesota is approximately 80,000, making up about 1.4% of the state's total population of around 5.7 million.
How Fraud Swamped Minnesota's Social Services System — The New York Times
The vast majority of people charged in Minnesota's fraud cases to date are of Somali origin.
Prosecutors Say Minnesota's Fraud Scandal Goes Further Than Previously Known — The New York Times
The poverty rate among Somali Minnesotans is 27.9%, compared to the state average of around 9%.
Latest Data on Somali Minnesotans 2024 — Empowering Strategies
Somali recipients face language and cultural barriers that make them vulnerable to fraud in publicly funded programs.
A Somali-American former investigator: why you're hearing about so much fraud in my community — Minnesota Reformer
Somalis began resettling in Minnesota in the 1990s as refugees from civil war, facilitated by voluntary agencies under the U.S. refugee resettlement program.
How Minnesota became a hub for Somali immigrants in the U.S. — NPR
COVID-19 related oversight lapses and waivers in programs like Medicaid contributed to increased fraud opportunities.
What to know about Minnesota's "industrial-scale fraud" scandal — CBS News
📰 Source Timeline (5)
Follow how coverage of this story developed over time
- 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.