Attorney General Ellison partners with federal law enforcement on indictments of Housing Stabilization Services providers

US Attorney’s Office, FBI, HHS/OIG, and State Fraud Unit worked closely with AG Ellison’s Medicaid Fraud Control Unit to investigate, execute search warrants, and secure charges

Ellison renews call for lawmakers to pass bipartisan bill expanding his Medicaid Fraud Control Unit and enhancing their investigative authority

September 15, 2025 (SAINT PAUL) — Minnesota Attorney General Keith Ellison today praised the federal charges levied against numerous principals behind extensive fraud in the Housing Stabilization Services (HSS) program. The charges resulted from a joint state-federal investigation of HSS providers, which Attorney General Ellison’s Medicaid Fraud Control Unit (MFCU) took part in.

The principals of Brilliant Minds Services LLC, Leo Human Services LLC, Liberty Plus LLC, and Faladcare LLC all independently defrauded Minnesota’s Medical Assistance (Medicaid) program by billing for HSS services that were not delivered. The leaders of these agencies often billed for the maximum amount of HSS services authorized while only delivering a minimal amount of services – if any at all were delivered. At times, the individuals purportedly receiving services had resided in stable housing for extended periods of time, yet the principals continued to bill for HSS services.

As identified in the indictments and information, principals charged with wire fraud include:

As identified in the federal search warrant affidavit, members of the Minnesota Attorney General’s Office’s Medicaid Fraud Control Unit partnered with federal and state law enforcement, including the FBI, Department of Health and Human Services’ Office of Inspector General (DHHS/OIG), and the Bureau of Criminal Apprehension’s State Fraud Unit, throughout the course of the joint investigation. Most prominently, this included conducting interviews with key witnesses and targets and leading the execution of search warrants at Faladcare, whose management was indicted as part of these cases. MFCU investigators were also present to seize evidence at every other search warrant executed in July. Attorneys, analysts, and investigators with the Minnesota Attorney General’s Office also participated in interviews with key figures at other agencies whose principals were charged today, helped complete other tasks at the July 2025 search warrants at other agencies and residences of the principals, analyzed data for State and Federal law enforcement, and conducted additional investigative activities.

“Fraudsters must be held accountable, and today’s indictments are a step in the right direction,” said Attorney General Ellison. “I hope this sends a message to all those who would take advantage of Minnesotans’ generosity and desire to help those in need.  My office gladly partnered with federal law enforcement in these investigations that led to these indictments by interviewing key witnesses, executing search warrants, analyzing data, and more. I am grateful to our partners in state and federal law enforcement for their work on these indictments and I look forward to continuing our work of curbing fraud in Minnesota. 

“I remain disappointed that lawmakers did not pass a bipartisan bill to expand my office’s team of Medicaid fraud fighters this last session,” added Ellison. “That team does great work, and I intend to renew the push to get them the resources they need this coming session. No matter what the legislature does, my team and I will continue to fight Medicaid fraud, hold wrongdoers accountable, and protect our tax dollars.”

Attorney General Ellison’s Medicaid Fraud Control Unit works to uncover, investigate, and prosecute individuals or organizations that steal from Medicaid and that exploit, neglect, or abuse vulnerable victims. The Medicaid Fraud Control Unit receives 75% of its funding from the U.S. Department of Health and Human Services under a grant award totaling $4,409,872 for Federal fiscal year (FY)2025. The remaining 25%, totaling $1,469,955 for FY 2025, is funded by the State of Minnesota. 

This past legislative session, Attorney General Ellison asked the Legislature for enhanced funding for the MFCU and for additional tools to better investigate and prosecute its cases, including changes to its subpoena authority that would be consistent with the authority county attorney’s have when conducting their investigations. Attorney General Ellison’s funding request would have allowed the Office to hire nine more staff in the MFCU, including seven new investigators and a new prosecutor. This request would have brought MFCU staffing levels in line with those of comparable states, as recommended by the U.S. Department of Health and Human Services Office of Inspector General. An HHS OIG audit has also found that Minnesota’s MFCU already punches above its weight: from 2020–22, Minnesota won the most convictions for provider fraud when compared with similarly sized states.   

Unfortunately, and despite 75% of the funding for these additional positions coming from the federal government, the Legislature denied Attorney General Ellison’s request to fund any new MFCU positions. The Legislature also did not enact any changes to enhance the MFCU’s authority to investigate and prosecute fraud cases, including its request for subpoena power matching that given to county attorney’s and penalties for medical assistance fraud that are consistent with penalties for the anti-kickback statute enacted this past session and other theft crimes codified in Minn. Stat. § 609.52

An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.