Overview

• Acting U.S. Attorney Joseph H. Thompson announced wire‑fraud cases against eight people tied to sham Housing Stabilization Services providers in what he called a massive scheme.
• Charging documents cite more than $8 million in alleged theft, naming operations including Brilliant Minds Services, Faladcare, Leo Human Services and Liberty Plus.
• Prosecutors say defendants signed up vulnerable, Medicaid‑eligible people — often leaving treatment programs — and billed for services that were not provided.
• The Minnesota Department of Human Services has halted payments to 115 HSS providers that collectively billed about $100 million and is moving to terminate the benefit, with an Oct. 20 end date pending federal approval.
• Investigators are scrutinizing provider networks that billed multiple Medicaid programs after FBI search warrants in June, and authorities say additional charges will follow in waves.