Two Minnesota men pleaded guilty to defrauding Minnesota’s Housing Stabilization Services (HSS) program out of more than $500,000 by submitting fraudulent claims for services that were never provided. This case is part of the ongoing collaboration between the U.S. Attorney’s Office for the District of Minnesota and the Health Care Fraud Strike Force to combat prolific fraud on government programs in Minnesota.
“This case is a stark reminder that fraud against public programs is not just a crime against government – it is a betrayal of the most vulnerable among us,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “By diverting resources meant for the elderly, mentally ill, and those suffering from substance abuse, the defendant undermined trust and jeopardized essential services. This guilty plea demonstrates our unwavering resolve to pursue justice, restore integrity, and ensure that taxpayer dollars are used to uplift – not exploit – our communities.”
“My office is committed to maintaining the integrity of public programs. The defendants’ guilty pleas bring us closer to obtaining accountability for the American taxpayer,” said U.S. Attorney Daniel N. Rosen for the District of Minnesota.
“These guilty pleas are the result of a continued, coordinated effort to stop the fraud plaguing our social services and healthcare benefits systems,” said Special Agent in Charge Christopher D. Dotson of the FBI Minneapolis Field Office. “These programs are meant to provide critical services to those most in need, not to line the pockets of fraudsters. The FBI and our partners remain steadfastly committed to rooting out these frauds and defending the resources of the American taxpayer.”
“I want to emphasize that protecting programs designed to support vulnerable communities is a top priority for IRS Criminal Investigation,” said Acting Special Agent in Charge Robert J. Kuszynski of IRS Criminal Investigation’s Chicago Field Office. “The deliberate submission of fraudulent claims undermines the trust placed in these vital services and diverts resources from those who truly need them. These guilty pleas demonstrate our unwavering resolve to pursue those who exploit public programs for personal gain. We will continue to work alongside our law enforcement partners to ensure accountability and safeguard taxpayer dollars.”
According to court documents, Hassan Ahmed Hussein, 29, and Ahmed Abdirashid Mohamed, 28, both of the Twin Cities area, enrolled Pristine Health LLC as a Medicaid provider, promising to help people with disabilities – including seniors and people suffering from mental illnesses and substance use disorders – find and maintain housing through the State’s now-defunct HSS program. Instead, Hussein and Mohamed submitted HSS claims to Medicaid for services that were never provided and significantly inflated the claims for higher reimbursement. Pristine Health enrolled approximately 90 Medicaid beneficiaries for HSS, including some who never agreed to receive the services. In total, Pristine Health billed Minnesota Medicaid more than $820,000.
Hussein entered a guilty plea on September 24, 2026, and Mohamed entered a guilty plea on October 1, 2026. Both pleaded to one count of wire fraud and face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing dates will be set by the Court at a later date.
Assistant Attorney General Colin M. McDonald of the Justice Department’s Fraud Division; U.S. Attorney Daniel N. Rosen for the District of Minnesota; Special Agent in Charge Christopher D. Dotson of the FBI Minneapolis Field Office; Special Agent in Charge Thomas Ethridge of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Adam Jobes of the IRS Criminal Investigation (IRS-CI), Chicago Field Office, made the announcement
FBI, HHS-OIG, and IRS-CI investigated the case.
Trial Attorney Raymond E. Beckering III of the Fraud Division’s Health Care Fraud Section and Assistant U.S. Attorney Matthew Murphy for the District of Minnesota are prosecuting the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.