Abdifitah Mohamed Pleads Guilty in Minnesota Medicaid Housing Fraud
Prosecutors say the plea confirms that linked providers used shell companies with false invoices to inflate Housing Stabilization Services claims to more than $300 million.
Overview
- Abdifitah Mohamud Mohamed pleaded guilty to wire fraud on Wednesday and faces sentencing at a later date.
- Federal filings say Mohamed ran Foundation First Services LLC from an office suite in St. Paul and funneled reimbursable consulting fees into fake and inflated bills.
- The Department of Justice says Mohamed personally pocketed about $300,000 to $400,000 between April 2023 and May 2025.
- Investigators allege the scheme used co‑located shell providers and inflated invoices to generate millions in false claims, with one company, Brilliant Minds, blamed for more than $2.3 million in fraudulent bills.
- Minnesota’s Housing Stabilization Services was created in 2020 to help seniors and people with disabilities but paid roughly $302 million in claims over 4.5 years and was shut down by regulators in October 2025 while prosecutions of seven other defendants continue.