Four Minnesota men have pleaded guilty to orchestrating a $2.2 million fraud scheme that targeted a state program designed to help vulnerable residents find housing.
According to the U.S. Department of Justice, the group used artificial intelligence to fabricate records to hide their activities from insurance companies.
Moktar Hassan Aden, 31, Mustafa Dayib Ali, 29, Khalid Ahmed Dayib, 26, and Abdifitah Mohamud Mohamed, 27, operated Brilliant Minds Services LLC out of the Griggs-Midway Building in St. Paul.
The men enrolled as providers in the Medicaid-funded Housing Stabilization Services program, which was intended to support seniors and individuals with disabilities or mental illnesses.
The Department of Justice reported that the defendants signed up approximately 350 people for these services but did nothing to assist them.
Instead, they submitted thousands of fraudulent claims for services that were never provided or were significantly inflated to receive higher reimbursements.
When insurance companies requested documentation to verify these claims, the men used ChatGPT to create fake records in an attempt to cover up the theft.
From April 2022 through April 2025, the scheme successfully drained roughly $2.2 million from the Minnesota Medicaid system.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division condemned the actions of the group for preying on those in need.
“These defendants corruptly exploited vulnerable people and a vulnerable program to enrich themselves,” McDonald said.
“Taxpayer dollars designed to provide shelter and support for the homeless and needy instead went to the pockets of these men,” McDonald added.
United States Attorney Daniel N. Rosen for the District of Minnesota emphasized that Medicaid fraud carries significant consequences for the community.
“These defendants stole funds intended to support vulnerable Minnesotans who rely on housing and recovery services,” Rosen said.
“Their guilty pleas underscore my office’s commitment to holding accountable those who exploit public programs,” Rosen noted.
The defendants each pleaded guilty to one count of wire fraud during separate hearings held between July 7 and July 23, 2026.
They now face a maximum penalty of 20 years in federal prison for their roles in the conspiracy.
A federal district court judge will determine the specific sentences after reviewing the U.S. Sentencing Guidelines.
The case was investigated by the FBI, the Internal Revenue Service Criminal Investigation, and the U.S. Department of Health and Human Services Office of Inspector General.
This prosecution is part of a larger effort by the Health Care Fraud Strike Force to address systemic fraud within government programs in Minnesota.
The Department of Justice highlighted this case as part of a growing trend of criminals using artificial intelligence to facilitate health care fraud.
Since its inception in 2007, the Health Care Fraud Strike Force has charged thousands of defendants who collectively billed federal programs for billions of dollars.
The Department of Justice noted that work to combat such fraud supports a whole-of-government effort to eliminate waste and abuse within federal benefit programs.
Trial Attorney Raymond E. Beckering III and Assistant U.S. Attorney Matthew Murphy are handling the prosecution.
Sentencing dates for the four men have not yet been established by the court.
The U.S. Attorney’s Office confirmed the ongoing commitment of the National Fraud Enforcement Division to investigate and prosecute those committing fraud.