Four Minnesota men have pleaded guilty to defrauding the state’s Medicaid program of $2.2 million through a scheme involving fabricated claims for housing assistance services, according to a July 24 announcement from the U.S. Department of Justice.
Moktar Hassan Aden, Mustafa Dayib Ali, Khalid Ahmed Dayib, and Abdifitah Mohamud Mohamed operated Brilliant Minds Services LLC from the Griggs-Midway Building in St. Paul. The company was enrolled as a Medicaid service provider under Minnesota’s now-defunct Housing Stabilization Services program, which was designed to help seniors, individuals with mental illness, and those struggling with substance abuse secure housing.
According to the DOJ, the four men systematically defrauded the program between April 2022 and April 2025 by billing Medicaid for services they either inflated or never provided at all. Investigators found that the defendants billed for 350 individuals whom they never actually assisted, generating fraudulent reimbursements totaling $2.2 million.
AI-Generated Records Used to Cover Fraud
When authorities requested documentation to verify their claims, the defendants allegedly used ChatGPT artificial intelligence software to fabricate records and conceal their fraudulent activity. This attempt to manufacture evidence underscored the calculated nature of the scheme.
U.S. Attorney for the District of Minnesota Daniel N. Rosen emphasized the seriousness of the offense. “Medicaid fraud is a serious offense with real consequences,” Rosen stated in the press release. “These defendants stole funds intended to support vulnerable Minnesotans who rely on housing and recovery services. Their guilty pleas underscore my office’s commitment to holding accountable those who exploit public programs.”
Potential 20-Year Sentences
All four defendants have entered guilty pleas to wire fraud charges. Each faces a maximum sentence of up to 20 years in federal prison, though actual sentencing will be determined by federal guidelines and judicial discretion.
Assistant Attorney General Colin M. McDonald of the DOJ National Fraud Enforcement Division condemned the exploitation of both vulnerable individuals and the program designed to serve them. “These defendants corruptly exploited vulnerable people and a vulnerable program to enrich themselves,” McDonald said. “Taxpayer dollars designed to provide shelter and support for the homeless and needy instead went to the pockets of these men.”
McDonald added that prosecuting fraudulent activity in Minnesota remains a priority: “They have now admitted their fraudulent conduct and will face justice for their crimes. In the meantime, our work to stamp out fraud in Minnesota will continue in abandon.”
Minnesota’s Ongoing Fraud Problem
Minnesota has experienced multiple high-profile fraud cases involving public assistance programs. The DOJ Health Care Fraud Strike Force Program and the Fraud Division continue to investigate similar schemes throughout the state.
The Housing Stabilization Services program, which was exploited in this case, has since been discontinued. The program’s termination came amid broader scrutiny of Minnesota’s social service programs and their vulnerability to fraudulent claims.
Federal authorities have not indicated whether additional defendants may be charged in connection with Brilliant Minds Services LLC or related entities. The investigation represents part of a broader federal effort to combat healthcare and social services fraud targeting taxpayer-funded programs designed for vulnerable populations.
Source: pjmedia.com — https://pjmedia.com/catherinesalgado/2026/07/25/4-minnesota-fraudsters-plead-guilty-to-22-million-in-stolen-funds-n4955457
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