Four Twin Cities men have pleaded guilty to wire fraud after using artificial intelligence to generate fake records and steal roughly $2.2 million from a Minnesota Medicaid assistance program, federal officials announced.
Between July 7 and July 23, 2026, Moktar Hassan Aden, 31; Mustafa Dayib Ali, 29; Khalid Ahmed Dayib, 26; and Abdifitah Mohamud Mohamed, 27, each entered a guilty plea to one count of wire fraud in separate court hearings. Each defendant faces up to 20 years in prison. Sentencing dates have not been scheduled.
According to court documents, the four men operated Brilliant Minds Services LLC out of the Griggs-Midway Building in St. Paul. The company was enrolled as a provider for Minnesota’s Housing Stabilization Services (HSS), a Medicaid program designed to help seniors, individuals with disabilities, and people dealing with mental illness or substance use disorders find and keep stable housing.
Between April 2022 and April 2025, the men signed up approximately 350 clients for the program. Instead of delivering services, the defendants billed Medicaid for work they never performed or significantly inflated their billing claims.
When insurance entities and regulators requested supporting documentation for the claims, the defendants used the artificial intelligence tool ChatGPT to fabricate records and cover up the scheme.
The prosecution stems from a joint effort between the U.S. Attorney’s Office for the District of Minnesota and the Health Care Fraud Strike Force. The case was investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Health and Human Services Office of Inspector General. Trial Attorney Raymond E. Beckering III and Assistant U.S. Attorney Matthew Murphy are prosecuting the case.
Officials noted the case reflects an emerging national trend of individuals employing artificial intelligence to carry out health care fraud. The state has since phased out the HSS program.
“These defendants corruptly exploited vulnerable people and a vulnerable program to enrich themselves,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “Taxpayer dollars designed to provide shelter and support for the homeless and needy instead went to the pockets of these men. They have now admitted their fraudulent conduct and will face justice for their crimes.”
United States Attorney Daniel N. Rosen stated that Medicaid fraud carries serious real-world impacts for residents relying on state support.
“Medicaid fraud is a serious offense with real consequences. These defendants stole funds intended to support vulnerable Minnesotans who rely on housing and recovery services,” Rosen said. “Their guilty pleas underscore my office’s commitment to holding accountable those who exploit public programs.”
The Department of Justice established its National Fraud Enforcement Division on April 7 to target crimes against public benefit programs. The division works alongside the federal Task Force to Eliminate Fraud, chaired by Vice President J.D. Vance, to target waste and abuse in government assistance initiatives.
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