One of 8 charged in Minnesota Housing Stabilization Services fraud takes plea deal

In September, eight Housing Stabilization Services (HSS) providers were federally charged, stemming from accusations of Medicaid fraud.

RELATED: Federal prosecutors announce fraud charges for 8 Housing Stabilization Services providers

Now, one of the men indicted, connected to the Brilliant Minds LLC provider, has pleaded guilty.

On Wednesday, 27-year-old Abdifitah Mohamud Mohamed’s plea agreement was filed, showing that he pled guilty to one count of wire fraud.

As part of the plea agreement, the government will dismiss the remaining charges against him and not pursue additional charges for anything currently under investigation by the United States Attorney’s Office for the District of Minnesota or the United States Department of Justice’s criminal fraud section.

Mohamed was one of four who were indicted for their connection to Brilliant Minds LLC and accused of collectively receiving more than $2.3 million in Medicaid billings.

Temporary DHS Commissioner Shireen Gandhi said her agency halted payments to Brilliant Minds, Leo Human Services and Liberty Plus in May.

Mohamed faces up to 20 years in prison and court-determined restitution.

HSS was established in 2020 as a means of connecting vulnerable adults with housing. The state estimated its annual operating cost to be around $2.6 million, but five years later, providers are billing the program upwards of $100 million per year.

The FBI executed a series of search warrants related to the program back in June as federal authorities looked into providers who were billing for services that clients never received. An affidavit filed at the time attested that HSS was designed to be “an easy-to-obtain benefit” that “has shown to be uniquely vulnerable to fraud.”

Since then, the Minnesota Department of Human Services announced plans to end HSS entirely.

RELATED STORIES:

Gov. Walz stands by decision to terminate Housing Stabilization Services program

HSS providers accused of fraud received more than $88 million through program

Questions remain for clients who used terminated state housing program

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