Four Minnesota men pleaded guilty to defrauding a federal housing program of about $2.2 million and concealing the scheme using artificial intelligence (AI) to create fake records, federal prosecutors announced on July 24.
Separate hearings were held between July 7 and July 23 in the case. Twin Cities area residents Moktar Hassan Aden, 31, Mustafa Dayib Ali, 29, Khalid Ahmed Dayib, 26, and Abdifitah Mohamud Mohamed, 27, all pleaded guilty to one count of wire fraud.
If convicted, they each face a maximum of 20 years in prison, according to the U.S. Department of Justice (DOJ).
The case was part of an ongoing collaboration with the Health Care Fraud Strike Force to combat fraud in government programs in Minnesota.
Assistant Attorney General Colin McDonald of the DOJ’s National Fraud Enforcement Division said the defendants “corruptly exploited vulnerable people and a vulnerable program to enrich themselves.”
“Taxpayer dollars designed to provide shelter and support for the homeless and needy instead went to the pockets of these men. They have now admitted their fraudulent conduct and will face justice for their crimes.”
The program was designed to help seniors and other people with mental illness, disabilities, or addictions find and maintain housing, but prosecutors say the defendants obtained and misappropriated millions of dollars without providing services to the intended people in need.
Records show they signed up about 350 people for the housing program and billed for services despite doing nothing to assist the Medicaid recipients, according to court records.
“When asked to provide supporting documentation for their claims, the defendants fabricated records using ChatGPT in an attempt to conceal their theft,” the DOJ stated.
The federal indictment alleged that Aden registered a company called Brilliant Minds Services LLC with the Minnesota Secretary of State in October 2020 and set up an office in the Griggs-Midway Building in St. Paul, Minnesota, where several other allegedly fraudulent healthcare providers have recently been uncovered.
In April 2022, Aden and his co-defendants completed paperwork to enroll the company as a provider with the state housing program, according to prosecutors.
Mohamed operated another program called Foundation First Services, re-registered with the state in 2023, through which he claimed to provide consultation services to the housing program providers, including Brilliant Minds, according to the indictment.
Between September 2022 and April 2025, Brilliant Minds submitted reimbursement claims totaling about $2.3 million, the indictment said.
Prosecutors said that Foundation First submitted reimbursement claims for about $222,000 from May 2023 to April 2025.
From 2020 to 2025, the defendants allegedly devised a scheme to submit fake and inflated bills to the housing program for nearly 350 different “clients,” becoming one of the 10 highest-billing providers for the program in the state, according to prosecutors.
The company allegedly provided only a fraction of the services.
“The defendants diverted some of those taxpayer dollars to their conspirators, and they kept much for themselves,” the indictment states.
The defendants all had access to the Brilliant Minds bank account. According to court documents, by May 2025, each of the defendants personally pocketed between about $300,000 and $400,000 from the account.
Prosecutors said the defendants also allegedly shared a Platinum American Express credit card, on which they accrued nearly half a million dollars in charges to fund their lifestyles.
“Medicaid fraud is a serious offense with real consequences. These defendants stole funds intended to support vulnerable Minnesotans who rely on housing and recovery services. Their guilty pleas underscore my office’s commitment to holding accountable those who exploit public programs,” said United States Attorney for the District of Minnesota Daniel N. Rosen.
