MINNEAPOLIS – The first wave of charges in a massive housing stabilization fraud scheme has hit the city as eight defendants, including Moktar Hassan Aden and Mustafa Dayib Ali, have been federally charged with wire fraud.
‘Today we announce the first wave of charges in a massive fraud in Minnesota’s housing stabilization program,’ said Acting U.S. Attorney Joseph H. Thompson. ‘The depth of the fraud takes my breath away, and it must be stopped.’
The scheme targeted Minnesota’s Housing Stability Services Program (HSS), which began in July 2022. The program was designed to assist people with disabilities, including seniors and those with mental illnesses and substance use disorders, by providing housing services. However, the defendants are accused of misappropriating millions in funds intended for these services.
Acting U.S. Attorney Thompson explained that the Program’s low barriers to entry and minimal record requirements made it susceptible to fraud, which has only exacerbated the crisis. ‘What we see are schemes stacked upon schemes, draining resources meant for those in need,’ he said.
The defendants, including Aden and Ali, enrolled their company, Brilliant Minds Services LLC, as an HSS Provider in April 2022. They claimed to provide essential housing services but allegedly submitted fake and inflated bills. The investigation revealed that they received substantial payouts from the program’s funds for which they were not entitled.
United States v. Moktar Aden et al., 25-cr-349 (MJD/JFD), outlines the charges against these defendants, who are facing significant consequences for their alleged actions in this massive fraud scheme.
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Key Facts
- State: Minnesota
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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