Four Twin Cities Men Plead Guilty in $2.2 Million Minnesota Medicaid Fraud Scheme Using AI-Generated Records
Northeast Radio SD News – Twin Cities, MN - Four Twin Cities men have pleaded guilty to defrauding Minnesota’s Housing Stabilization Services (HSS) program out of approximately $2.2 million, a scheme federal prosecutors say was concealed using artificial intelligence to fabricate records.
According to the U.S. Department of Justice, the defendants — 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. They enrolled the business as a Medicaid provider. They claimed they would help people with disabilities, seniors, and individuals with mental illness or substance use disorders find and maintain housing through the state’s now‑defunct HSS program.
Instead, prosecutors say the men signed up roughly 350 Medicaid recipients and submitted thousands of claims for services that were never provided or were significantly inflated to obtain higher reimbursements.
AI‑Generated Fake Documentation
When insurance companies requested supporting documentation, the defendants allegedly used ChatGPT to generate fabricated records in an attempt to hide the fraud. Federal investigators say the group stole approximately $2.2 million from Minnesota Medicaid between April 2022 and April 2025.
Guilty Pleas and Potential Penalties
In hearings held between July 7 and July 23, 2026, each defendant pleaded guilty to one count of wire fraud. They each face a maximum penalty of 20 years in federal prison. Sentencing dates have not yet been scheduled.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division said the defendants “corruptly exploited vulnerable people and a vulnerable program to enrich themselves,” noting that taxpayer dollars intended to support homeless and at‑risk Minnesotans were instead diverted for personal gain.
U.S. Attorney Daniel N. Rosen for the District of Minnesota said the guilty pleas reflect the office’s commitment to holding accountable those who exploit public programs, calling Medicaid fraud “a serious offense with real consequences.”
Investigation and Prosecution
The FBI, IRS 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 Justice Department’s Fraud Section and Assistant U.S. Attorney Matthew Murphy are prosecuting the case.
National Fraud Enforcement Efforts
The Justice Department noted that the case reflects a growing trend of fraudsters using artificial intelligence to further schemes targeting health care programs nationwide. It also aligns with the work of the Health Care Fraud Strike Force, which has charged more than 6,200 defendants since 2007 in cases involving more than $45 billion in fraudulent billings.
Federal officials encourage the public to report suspected health care fraud through the HHS‑OIG hotline, the FBI, or the DEA Diversion Control Division.
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