Two Minnesota men have pleaded guilty in a Medicaid fraud scheme that took more than $500,000 (£376,400) from a state housing programme, with the second plea entered on 1 October 2026, the US Justice Department said.
The men enrolled Pristine Health LLC as a Medicaid provider to help people with disabilities find and keep housing. Court documents show they instead claimed Medicaid payments for services never provided under Minnesota's now-defunct Housing Stabilization Services programme.
Some Medicaid Beneficiaries Had Not Agreed To Services
Hassan Ahmed Hussein, 29, and Ahmed Abdirashid Mohamed, 28, both from the Twin Cities area, enrolled approximately 90 Medicaid beneficiaries through Pristine Health, according to court documents. Some beneficiaries had never agreed to receive its housing services.
The programme, known as HSS, was intended to support people with disabilities, including seniors and people with mental illnesses or substance use disorders. Pristine Health registered as a Medicaid provider on the promise of helping those beneficiaries find and maintain accommodation.
The company billed Minnesota Medicaid more than $820,000 (£617,200) altogether. Alongside claims for services that never happened, Hussein and Mohamed significantly inflated claims to secure higher reimbursements, court documents show.
Officials Say Medicaid Fraud Jeopardised Essential Support
Assistant Attorney General Colin M. McDonald, of the Justice Department's National Fraud Enforcement Division, described the diversion of money intended for vulnerable people as 'a betrayal of the most vulnerable among us'. He said the fraud undermined trust and jeopardised essential services.
'My office is committed to maintaining the integrity of public programs,' said Daniel N. Rosen, US Attorney for the District of Minnesota. 'The defendants' guilty pleas bring us closer to obtaining accountability for the American taxpayer.'
The FBI, the Department of Health and Human Services Office of Inspector General and IRS Criminal Investigation investigated the case. Christopher D. Dotson, special agent in charge of the FBI's Minneapolis Field Office, said the pleas resulted from a coordinated effort to stop fraud affecting social services and healthcare benefits.
The prosecution forms part of continuing collaboration between the Minnesota US Attorney's Office and the Health Care Fraud Strike Force to combat fraud against government programmes in the state.
Nationally, the Justice Department said its Health Care Fraud Strike Force has charged more than 6,200 defendants since 2007. They collectively billed federal healthcare programmes and private insurers more than $45bn (£33.9bn). Those figures cover the wider enforcement programme, which comprises nine strike forces.
The department also said the Centers for Medicare & Medicaid Services was working with the health department's inspector general to hold providers accountable for involvement in healthcare fraud schemes.
Sentencing Remains Ahead in Minnesota Medicaid Case
Hussein entered his guilty plea on 24 September 2026. Mohamed followed on 1 October. Each pleaded guilty to one count of wire fraud, carrying a maximum penalty of 20 years in prison. Sentencing dates have not been scheduled, the department said.
Trial Attorney Raymond E. Beckering III of the Justice Department's Fraud Division, Health Care Fraud Section, and Assistant US Attorney Matthew Murphy for the District of Minnesota are prosecuting the case.
A federal district court judge will determine the penalties after considering the US Sentencing Guidelines and other statutory factors.
