By Femi Osiniusi
Federal prosecutors in Minnesota have charged eight people, including two Nigerian nationals, in what they describe as the first wave of indictments tied to a massive fraud in the state’s Housing Stabilization Services (HSS) program.
The program, launched in July 2022, was the first of its kind in the United States to provide Medicaid coverage for housing support services. It was designed to help people with disabilities, seniors, and those living with mental illness or substance use disorders secure and maintain stable housing. Services covered included housing consultations, transition support, sustaining services, and moving expenses.
However, investigators say the program’s low entry barriers and minimal reimbursement requirements left it vulnerable to exploitation. According to charging documents, the defendants established companies that posed as legitimate service providers but instead filed inflated or fabricated claims, diverting millions of taxpayer dollars.
Among those indicted are Christopher Adesoji Falade, 62, and his son Emmanuel Oluwademilade Falade, 32, both Nigerians, who prosecutors allege fraudulently billed over $2.2 million through their company, Faladcare Inc. They are accused of exaggerating services rendered to about 100 beneficiaries and diverting the proceeds to themselves and associates.
Other defendants include Moktar Hassan Aden, Mustafa Dayib Ali, Khalid Ahmed Dayib, and Abdifitah Mohamud Mohamed of Brilliant Minds Services LLC, which allegedly submitted $2.3 million in false claims. Prosecutors say each personally pocketed between $300,000 and $400,000, spending heavily on luxury items, including nearly half a million dollars in charges on a Platinum American Express card.
Also charged is Asad Ahmed Adow, 26, whose company Leo Human Services LLC allegedly claimed $2.7 million in reimbursements. Investigators say the funds were used to purchase real estate in Kenya, lease a luxury apartment in Minnesota, and acquire a 2024 BMW X4. His brother, Anwar Ahmed Adow, 25, owner of Liberty Plus LLC, is accused of defrauding the program of more than $1.2 million, using some of the funds to lease a Mercedes-Benz CLA.
Officials from the FBI, IRS, and Health and Human Services condemned the fraud, calling it a betrayal of vulnerable Minnesotans. Acting U.S. Attorney Joseph H. Thompson described the scheme as “breathtaking” in scale, warning that more charges are likely as investigations continue.
All eight defendants face federal wire fraud charges. They remain presumed innocent until proven guilty in court.
