Before FBI raids, Maple Grove man saw 'red flags' with housing program provider
Impact of housing stabilization fraud in MN
A Maple Grove man details the impact of the housing stabilization fraud in Minnesota. FOX 9's Mike Manzoni has more.
MAPLE GROVE, Minn. (FOX 9) - A Maple Grove man said a provider who was supposed to help his friend find housing did nothing and repeatedly canceled meetings. His story is very similar to accounts described in federal court documents filed as part of a multimillion-dollar fraud investigation.
Man says housing provider abandoned friend, did nothing
What happened:
Amir Basri connected with the Housing Stabilization Services program in February when he learned that his friend was eligible. His friend suffers from mental health issues and was searching for help finding housing.
He said after an initial virtual meeting on March 17, the provider repeatedly canceled meetings and avoided phone calls.
His story closely mirrors those detailed in court filings as part of a search warrant application.
What they're saying:
"I tried to reach out to them directly, and I think that’s when I started to see some red flags," said Basri. "That [meeting] was scheduled a week later. They canceled last minute. I was like, ‘Okay.’ Next appointment – canceled the last minute. Then they set up for two weeks later – no show."
The investigation:
The FBI raided more than a half-dozen homes and businesses across the metro on July 16 as part of a sprawling probe into suspected fraud.
According to court documents, providers billed Medicaid for millions of dollars worth of services they never rendered.
Housing Stabilization Services, which was created in 2020, allows Medicaid to cover expenses for finding housing for vulnerable adults, including seniors and those with disabilities or addiction issues.
Federal investigators said the program is "extremely vulnerable to fraud." According to a search warrant, 14 providers collected $22 million over a 16-month period. In all, the program has cost taxpayers $302 million since its inception. During that time frame, it was estimated to cost about $12 million.
The response:
FOX 9 is not publishing the name of the provider because it did not appear in the court documents, and no one has been charged. When reached for comment on Thursday, the person who answered the provider’s business phone hung up after a FOX 9 reporter identified himself.