Two plead guilty in $2.25M housing fraud scheme
Two Minnesota men, Mustafa Dayib and Abdulbasit Ibrahim, pleaded guilty to conspiracy to commit health care fraud tied to Minnesota's Housing Stabilization Services program.[1]
Prosecutors say the scheme, centered on Brilliant Minds Services LLC, falsely claimed about $2.25 million in services for roughly 350 people.[1] They say only a fraction of the claimed work was actually performed.[1]
Minnesota's Housing Stabilization Services program was originally projected to cost about $2.6 million per year.[1] Instead, the program paid out $21 million in 2021, $42 million in 2022, and $74 million in 2023.[1] Payments jumped to $104 million in 2024 and another $61 million in the first half of 2025 before the Department of Human Services shut the program down over fraud concerns.[1]
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📌 Key Facts
- Defendants Mustafa Dayib and Abdulbasit Ibrahim pleaded guilty to conspiracy to commit health care fraud tied to Minnesota’s Housing Stabilization Services program.
- Prosecutors say the scheme, centered on Brilliant Minds Services LLC, falsely claimed about $2.25 million in services for roughly 350 people, with only a fraction of the work actually done.
- The Housing Stabilization Services program, originally projected to cost about $2.6 million per year, instead paid out $21M in 2021, $42M in 2022, $74M in 2023, $104M in 2024, and another $61M in just the first half of 2025 before DHS shut it down over fraud concerns.
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