Feds: Housing fraud suspects spent stolen tax money on real estate in Kenya, luxury cars
MN Housing fraud: Stolen funds fueled luxurious lives
Charges say Minnesota Housing Services fraud fueled luxurious lifestyles for those suspected of stealing the funds. FOX 9's Mike Manzoni has the full report.
MINNEAPOLIS (FOX 9) - The suspects in the wide-ranging housing fraud investigation used millions of stolen tax dollars to invest in real estate in Kenya and lease luxury vehicles, prosecutors said.
Fraud suspects racked up nearly $500K in credit card purchases, invested in real estate, Feds say
Suspects spent millions of 'stolen tax money,' charges say
Criminal charges are filed against multiple suspects who are accused of stealing millions from Minnesota's Housing Stabilization Services. FOX 9's Mike Manzoni has the full report.
The allegations:
Four of the suspects pocketed as much as $400,000 apiece and used a joint American Express credit card to rack up nearly $500,000 in purchases, prosecutors said.
According to prosecutors, another suspect used the stolen money to invest in real estate in Kenya and lease an apartment in Roseville and a BMW.
Another suspect used the stolen money to lease a Mercedes and make investments, prosecutors said.
In all, the suspects charged on Thursday stole more than $8 million, according to prosecutors.
The suspects:
Eight suspects were charged in connection with the fraud scheme: Moktar Hassan Aden, 30; Mustafa Dayib Ali, 29; Khalid Ahmed Dayib, 26; Abdifitah Mohamud Mohamed, 27; Christopher Adesoji Falade, 62; Emmanuel Oluwademilade Falade, 32; Asad Ahmed Adow, 26; and Anwar Ahmed Adow, 25.
The Adows are brothers.
All the suspects were charged with wire fraud.
The companies:
The initial round of indictments mentioned four companies involved in the scheme: Brilliant Minds Services LLC of St. Paul; Leo Human Services LLC of Brooklyn Park; Faladcare Inc. of St. Paul; and Liberty Plus LLC of Roseville.
Charges came after multiple FBI raids
The backstory:
The FBI raided more than a half-dozen homes and businesses across the metro on July 16 as part of a sprawling probe into the 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, allowed Medicaid to cover expenses for finding housing for vulnerable adults, including seniors and those with disabilities or addiction issues.
Federal investigators said the program was "extremely vulnerable to fraud."
According to a search warrant, 14 providers collected $22 million over a 16-month period.
In all, the program cost taxpayers $302 million over five years. During that time frame, it was estimated to cost about $12 million.
It is still unclear how much of the $302 million was stolen, but prosecutors said most of the claims were bogus.
The state shut down the program in August, shortly after the raids.
What's next:
Federal prosecutors said the investigation is ongoing, and they expect to charge additional suspects.