US EditionKARE 11 Investigates: 8 Federally Charged in Minnesota Housing Stabilization Fraud Scandal
Authorities charged eight individuals linked to fraudulent billing in a housing program costing $310 million since 2020, targeting vulnerable populations including seniors and those with disabilities.
- Thursday, Acting U.S. Attorney Joseph H. Thompson announced federal charges against eight people linked to Minnesota's HSS program, including Faladcare Inc. and Leo Human Services.
- The Minnesota Department of Human Services says the Housing Stabilization Services program, launched in 2020 to serve about 8,000 people at roughly $2.6 million annually, has paid out over $302 million since then.
- Investigators found operators billed over $2.3 million between Sept. 2022 and April 2025, with companies like Brilliant Minds Services LLC and Liberty Plus LLC receiving millions, while individuals allegedly pocketed about $300,000 to $400,000 each.
- Following the charges, the Minnesota Department of Human Services suspended payments to four businesses between May and June, requested termination of the current HSS model, and plans to end it on Aug. 1.
- Thompson says the investigation will charge more defendants "in waves" as it examines hundreds of companies, while Minnesota lawmakers passed reforms including unannounced checks and fingerprinting to prevent abuse.
19 Articles
19 Articles
'Minnesota is drowning in fraud': Prosecutors unveil first indictments in housing program fraud AlphaNews.org
Share This StoryThe U.S. Attorney’s Office in Minnesota has indicted eight individuals for their alleged role in defrauding the state’s Housing Stabilization Services (HSS) program. In a press briefing, Acting U.S. Attorney Joe Thompson said most of the $100 million HSS program was fraud. In August, the Minnesota Department of Human Services (DHS) shut down HSS, a housing assistance program funded by Medicaid but operated by DHS. State leaders s…
Post Bulletin
‘Minnesota is drowning in fraud’: Initial charges announced in housing stabilization probe
MINNEAPOLIS — Acting U.S. Attorney Joe Thompson announced initial charges on Thursday, Sept. 18, for what he said is a “massive” fraud scheme coming out of the state’s housing stabilization program. On July 16, the FBI raided companies suspected of providing fraudulent services under the 2020-established Housing Stabilization Services program, designed to help seniors and people with disabilities, including mental illness and substance use disor…
Feds charge 8 in 'massive fraud' tied to Minnesota housing stabilization program
Federal Medicaid funds were supposed to help people with disabilities find housing. Instead, information on eligible beneficiaries was used to submit inflated and fake reimbursement claims, federal prosecutors said Thursday, adding that more charges are expected.
Federal prosecutors announce fraud charges for 8 Housing Stabilization Services providers
Acting U.S. Attorney for Minnesota Joseph Thompson announced on Thursday the first round of charges for people who abused a program that he declared to be "riddled with fraud."
Coverage Details
Bias Distribution
- 44% of the sources are Center, 44% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
