MINNEAPOLIS — Investigators on Wednesday morning, July 16, conducted raids of eight service providers throughout the Twin Cities metro area suspected of abusing “millions” in housing stabilization funds.
An affidavit unsealed Wednesday by FBI Special Agent Kurt Beulke alleges that the providers targeted in the investigation exploited , a Minnesota Medical Assistance program launched in 2020 designed to help seniors and people with disabilities, including mental illness and substance use disorders, find and maintain housing.
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“The Program has proved to be extremely vulnerable to fraud. Since Minnesota became the first state to offer Medicaid coverage for Housing Stabilization Services, dozens of new companies have been created and enrolled in the program,” Beulke wrote in the affidavit. “These companies, and the individuals who run them, have taken advantage of the housing crisis and the drug addiction crisis in Minnesota to prey on individuals who need help getting back on their feet as they recover from drug addiction.”
Beulke said the companies have been contacting Medicaid-eligible people in halfway houses and residential drug treatment facilities and offering to help them find stable housing, and then “fraudulently” claiming to provide dozens of program service hours to their new “clients.”
“In reality, client after client has reported that they received little or no actual services or assistance from these companies,” Beulke wrote in the affidavit. “But the companies engaged in this scheme have received millions of dollars in Medicaid funds for housing stabilization services they did not actually provide.”
According to the affidavit, the providers with warrants include Brilliant Minds Services LLC in St. Paul, Leo Human Services LLC in Brooklyn Park, Liberty Plus LLC in Roseville, Pristine Health LLC in St. Paul, two locations associated with Faladcare Inc. in Little Canada and Woodbury, and two residential homes in Blaine and St. Paul.
Beulke said in the affidavit that the searches are part of an investigation into what he called a “massive scheme” to defraud the housing services.
The Trust Project
