Federal Prosecutors Reveal Over $9 Billion Fraud Scheme in Minnesota Housing and Health Services
Federal prosecutors have uncovered an industrial-scale fraud scheme in Minnesota that could exceed $9 billion, describing it as far from an isolated incident. Since 2018, investigators identified fraud across 14 programs, resulting in a total taxpayer loss estimated at $18 billion.
On December 18, 2025, six new defendants were charged in connection with the Minnesota housing services fraud, joining eight others charged in September. Altogether, 14 defendants are implicated in this housing stability services scheme.
Some individuals involved profited significantly, with two defendants pocketing about $750,000, which funded travel to international destinations including London, Istanbul, and Dubai. One defendant submitted fraudulent claims totaling $1.4 million, using some of these funds to purchase cryptocurrency before fleeing the country after a subpoena was issued.
Authorities noted that substantial sums from the fraud were sent overseas to East Africa, primarily Kenya and Nairobi, where some money was used to acquire real estate. The scheme involved shell companies issued invoices for services that were never provided, and included overbilling Medicare and Medicaid across multiple programs.
New allegations have emerged involving a state-run autism services program; a woman previously charged in this program has pleaded guilty. First Assistant U.S. Attorney Joe Thompson emphasized the scale of these operations, stating the fraud could represent a significant portion of the $18 billion lost, and is by no means the actions of a handful of bad actors.
Dependents named by prosecutors in relation to the case include Abdinajib Hassan Yussuf, Anthony Waddell Jefferson, Lester Brown, Hassan Ahmed Hussein, Ahmed Abdirashid Mohamed, and Kaamil Omar Sallah.
