U.S. Attorney Announces First Charges in Minnesota Housing Services Fraud Scheme
Minneapolis, MN (MinnesotaNow)- The U.S. Attorney’s Office has announced the first round of charges regarding Minnesota’s latest fraud case.
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Acting U.S. Attorney Joseph H. Thompson said during a news conference Thursday that the first eight defendants in the case are each charged with wire fraud.
The eight defendants are accused of carrying out a scheme to steal millions of dollars from the federally funded healthcare benefits made available through Minnesota’s Housing Stability Services Program.
8 Defendants Charged in Minnesota Housing Fraud Scheme Accused of Stealing Over $6 Million
The program was set up to help seniors, people with disabilities and individuals suffering from mental illness and addiction to find and maintain housing.
It called for reimbursing companies who would help eligible individuals find homes. Court documents allege the fraudsters used their companies to obtain reimbursements from the program for housing stabilization services they never provided.
A news release issued on Thursday says the program was expected to cost $2.6 million but it paid out more than $21 million in claims in 2021.
The payouts doubled to $42 million in 2022, rose to $74 million in 2023, and spiked to $104 million in 2024. Through the first six months of 2025, the program paid out $61 million, officials say.
30-year-old Moktar Hassan Aden, 29-year-old Mustafa Dayib Ali, 26-year-old Khalid Ahmed Dayib and 27-year-old Abdifitah Mohamud Mohamed are accused of using companies, set up by Aden, to collect $2.3 million in reimbursements from September 2022 to this past April.
Court documents say each of the four defendants pocketed between $300,000 and $400,000 each and submitted inflated and fraudulent bills having only provided a fraction of the services they were receiving reimbursements for.
62-year-old Christopher Adesoji Falade and 32-year-old Emmanuel Oluwademilade Falade are accused of submitting inflated and fraudulent bills to collect $2.2 million in reimbursements. They split the proceeds among themselves and employees, the news release says.
26-year-old Asad Ahmed Adow is accused of obtaining $2.7 million in federal funds for services by instructing his hourly employees to inflate their billable hours.
He’s also alleged to have ordered his employees to make fraudulent notes detailing services they provided despite never rendering services, court documents allege.
The news release says Adow used the federal dollars to buy real estate in Kenya, lease an apartment in Roseville, buy a BMW and fund a luxury lifestyle.
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25-year-old Anwar Ahmed Adow is also accused of instructing employees at his company to inflate their hours. The news release says he obtained $1.2 million in medicaid dollars he received to lease a Mercedes Benz, make investments and fund his lifestyle.
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