2 men indicted in ‘fraud tourism’ case plead guilty in federal court

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    Guilty pleas in fraud tourism cases 

Two men who were accused in the state’s “fraud tourism” case made their first appearances in federal court on Monday and entered guilty pleas.

RELATED: US Attorney’s Office: ‘Half or more’ of $18B billed through state programs tied to fraud

Anthony Waddell Jefferson, 37, and Lester Brown, 53, pleaded guilty to wire fraud.

Prosecutors said Jefferson could face up to 6.5 years in prison and Brown could face up to four years, but the sentencing will come at a later date.

Prosecutors have said the fines range from $25,000 to $250,000, and restitution totalling $3.5 million is to be paid by both defendants.

Jefferson and Brown both registered LLCs in Minnesota in 2022. Jefferson registered as Chozen Runner LLC while Brown registered as Retsel Real Estate LLC. According to the indictment, both were entities that they previously created in Pennsylvania.

In total, the two LLCs claimed to help 230 people and received around $3.5 million in Housing Stabilization Services payments.

Jefferson admitted to submitting inflated figures for both Chozen Runner and Retsel Real Estate. He also admitted to instructing his employees, some of whom didn’t actually exist, to submit fake documents.

Through Retsel Real Estate, Brown admitted to fabricating client notes and even using ChatGPT to do so.

A spokesperson for the Minnesota Department of Human Services sent the following statement Monday night:

“Today’s guilty pleas are a result of the Minnesota Department of Human Services working with our law enforcement partners to hold criminals accountable for their actions. In summer 2025, the state suspended payments to both providers related to today’s pleas and referred the case to law enforcement. Since then, we have discontinued the Housing Stabilization Services benefit and implemented several new verification checks to prevent fraud in other services.

“We remain devoted to strengthening program integrity, improving oversight of services and preventing improper and fraudulent payments before they go out the door. We welcome any tips or information from our partners or the public that helps us take action.”
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