Four Minnesota men stole approximately $2.2 million from a Medicaid program intended to help vulnerable residents find and maintain housing, then used ChatGPT to fabricate records when insurance companies questioned the billing.
Moktar Hassan Aden, Mustafa Dayib Ali, Khalid Ahmed Dayib and Abdifitah Mohamud Mohamed enrolled Brilliant Minds Services LLC as a provider in Minnesota’s Housing Stabilization Services program.
They signed up approximately 350 Medicaid recipients and submitted thousands of claims for services they did not provide or substantially inflated, according to federal prosecutors.
They Billed Medicaid Without Providing the Housing Help
Four Minnesota men pleaded guilty to a $2.2M Medicaid fraud scheme and to concealing the scheme by using artificial intelligence to create fake records. Read more: https://t.co/fEaWsEpRoS pic.twitter.com/tPmPfLGidj
— OIG at HHS (@OIGatHHS) July 27, 2026
Aden, Ali, Dayib and Mohamed operated Brilliant Minds from an office in the Griggs-Midway Building in St. Paul, according to the Justice Department. The company was enrolled in Housing Stabilization Services, a Medicaid benefit designed to help people with disabilities secure and retain housing.
Eligible recipients included seniors and people with mental illnesses or substance-use disorders. Providers could receive reimbursement for housing consultations, assistance moving into housing and services intended to help residents remain housed.
Brilliant Minds signed up approximately 350 recipients but billed Medicaid while doing nothing to assist some clients and providing only a fraction of the services claimed for others.
The Fraudulent Claims Brought in Approximately $2.2 Million
From April 2022 through April 2025, the defendants caused Brilliant Minds to receive approximately $2.2 million for housing services they falsely claimed to have provided. The company had become one of Minnesota’s 10 highest-billing Housing Stabilization Services providers by 2024.
When prosecutors first announced the charges in September 2025, they alleged that each defendant had personally received between approximately $300,000 and $400,000 from Brilliant Minds between April 2023 and May 2025.
Prosecutors also alleged that the men shared a Platinum American Express card carrying nearly $500,000 in charges and used company accounts containing Medicaid payments to cover the bills.
ChatGPT Produced Records After Insurers Questioned the Claims
Insurance companies eventually asked Brilliant Minds for documentation showing that its employees had performed the housing services listed in the claims. Instead of producing legitimate service records, the defendants used ChatGPT to fabricate documents intended to support the reimbursements they had already received.
The Justice Department described the AI-generated records as an attempt to conceal the theft. Prosecutors did not disclose the prompts entered into ChatGPT, reproduce the fabricated documents or explain whether the records contained invented client meetings, service dates or employee activity.
All Four Men Pleaded Guilty to Wire Fraud
Aden, 31; Ali, 29; Dayib, 26; and Mohamed, 27, entered guilty pleas during separate federal court hearings held between July 7 and July 23, 2026. Each pleaded guilty to one count of wire fraud and faces a maximum possible sentence of 20 years in federal prison.
The FBI, IRS Criminal Investigation and the Department of Health and Human Services Office of Inspector General investigated the case. Federal sentencing dates had not been scheduled.
Recipients Can Report Services That Never Happened
A Medicaid recipient who sees a provider listed for housing, health care or support services they never received can record the provider’s name, the service dates, the type of assistance claimed and any amount shown on a plan notice or Explanation of Benefits.
Messages, appointment schedules, emails and records showing where the recipient lived during the claimed service period can also help investigators compare the billing with what actually occurred. The Minnesota Department of Human Services accepts reports involving suspected fraud by Medicaid providers through its online fraud-reporting tool.
Reports can also be made to the department’s Program Integrity and Oversight hotline at 651-431-2650 or 1-800-657-3750, or by emailing OIG.Investigations.DHS@state.mn.us. Minnesota ended the Housing Stabilization Services program on Oct. 31, 2025. Suspected false claims involving the former program can still be reported to state investigators.