Man pleads guilty in Minnesota Housing Stabilization Services fraud scheme
8 charged in housing stabilization program fraud
Charges have been filed in the housing stabilization fraud scheme. FOX 9's Mike Manzoni has the latest.
MINNEAPOLIS (FOX 9) - A man pleaded guilty to wire fraud after being accused of submitting millions of dollars in false claims through a St. Paul company.
Guilty plea Housing Stabilization Services fraud scheme
What we know:
Abdifitah Mohamud Mohamed pleaded guilty to wire fraud Wednesday morning. He was accused of using Brilliant Minds Services LLC, a St. Paul-based company, to submit more than $2 million in fraudulent claims.
The fraud was tied to Minnesota’s Housing Stabilization Services program. The amount of fraud was so extensive that the state permanently shut down the program.
Housing Stabilization Services fraud
The backstory:
Mohamed was federally charged with wire fraud along with seven others in September 2025 for their role in the fraud scheme.
Mohamed used Brilliant Minds Services LLC to submit inflated and fraudulent bills, and provided only a fraction of the services he claimed.
Brilliant Minds operated out of an office suite in St. Paul, which was in the same building as another provider called Foundation First Services LLC. Mohamed operated First Services and claimed to provide additional reimbursable consultation services to other HSS providers, including Brilliant Minds.
Between September 2022 and April 2025, Brilliant Minds submitted over $2.3 million in fraudulent claims, and ranked as one of the top 10 highest billing HSS providers in the state in 2024.
READ MORE: 8 federally charged in massive Minnesota Housing Stabilization Services fraud scheme
The Minnesota Housing Stabilization Service program was formed in 2020 to help seniors and people with disabilities, including those with mental illnesses and substance abuse issues, find stable housing.
The Medicaid program was estimated to cost about $2.6 million annually, but it quickly grew, and the program paid out a total of $302 million in claims over 4.5 years.
Hundreds of companies enrolled in the program and claimed to provide housing stabilization services to clients throughout the state.
The Source: Federal court documents and past FOX 9 reporting.