07/31/2026

Four Men Plead Guilty to $2M Minnesota Medicaid Fraud

Office of Public Affairs U.S. Department of Justice

Four Minnesota men pleaded guilty to defrauding Minnesota’s Housing Stabilization Services (HSS) program out of approximately $2.2 million and concealing the scheme by using artificial intelligence to create fake records when questioned by insurance companies.

This 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 prolific fraud on government programs in Minnesota. It also highlights a burgeoning trend of fraudsters using artificial intelligence to further a fraud scheme targeting health care programs in Minnesota and around the country.

“These defendants corruptly exploited vulnerable people and a vulnerable program to enrich themselves,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “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. In the meantime, our work to stamp out fraud in Minnesota will continue in abandon.”

“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.