Four Minnesota men have pleaded guilty to a Minnesota Medicaid fraud scheme that allegedly stole approximately $2.2 million from the state’s Housing Stabilization Services (HSS) program and used artificial intelligence to fabricate records when insurance companies requested documentation. The defendants admitted to submitting thousands of claims for services they never provided or significantly inflating claims to obtain higher reimbursements.
The case involves four Twin Cities-area men who operated Brilliant Minds Services LLC from the Griggs-Midway Building in St. Paul, Minnesota. According to court documents, the business enrolled as a Medicaid program provider and claimed to help people with disabilities, including seniors and individuals with mental illnesses and substance use disorders, find and maintain housing through the now-defunct HSS program.
Minnesota Medicaid Fraud Scheme Targeted 350 Recipients
According to prosecutors, Moktar Hassan Aden, 31, Mustafa Dayib Ali, 29, Khalid Ahmed Dayib, 26, and Abdifitah Mohamud Mohamed, 27, signed up approximately 350 people for HSS. The defendants then billed Medicaid for services they allegedly did not provide to those recipients.
The scheme reportedly operated from April 2022 through April 2025. During that period, the four men allegedly submitted thousands of HSS claims and fraudulently obtained approximately $2.2 million from Minnesota Medicaid.
The case highlights the alleged misuse of a government program designed to provide housing-related support to vulnerable people. Authorities said the defendants exploited the program by claiming reimbursements for services that were never delivered or by submitting inflated claims.
Artificial Intelligence Used to Fabricate Records
The case also highlights the use of artificial intelligence in an alleged effort to conceal healthcare fraud. When insurance companies requested supporting documentation for the claims, the defendants used ChatGPT to fabricate records, according to court documents.
The use of ChatGPT to create fake documentation adds another dimension to the health care fraud case, as authorities continue to investigate alleged schemes involving government-funded programs. The defendants allegedly used the fabricated records to conceal the fraudulent claims and support services they had claimed to provide.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division said the defendants exploited vulnerable people and a vulnerable program for financial gain. U.S. Attorney for the District of Minnesota Daniel N. Rosen said Medicaid fraud carries serious consequences and that the funds involved were intended to support vulnerable Minnesotans relying on housing and recovery services.
Four Defendants Plead Guilty to Wire Fraud
In separate hearings held between July 7 and July 23, 2026, all four defendants pleaded guilty to one count of wire fraud. Each faces a maximum penalty of 20 years in prison.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing dates have not yet been set.
The FBI, the U.S. Internal Revenue Service, Criminal Investigation, and the U.S. Department of Health and Human Services, Office of Inspector General, are investigating the case. Trial Attorney Raymond E. Beckering III of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Murphy for the District of Minnesota are prosecuting the case.
Health Care Fraud Strike Force Continues Investigations
The case is part of the ongoing collaboration between the U.S. Attorney’s Office for the District of Minnesota and the Health Care Fraud Strike Force to combat fraud targeting government programs.
The Department of Justice’s Health Care Fraud Strike Force Program currently includes nine strike forces operating across federal districts. Since 2007, the program has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion.
The case also comes as the Justice Department’s National Fraud Enforcement Division focuses on investigating and prosecuting fraud against the American people. Authorities said efforts to combat fraud remain part of broader work targeting fraud, waste, and abuse within federal benefit programs.
