Pennsylvania Men Convicted in Fraud Scheme Targeting Minnesota Housing Program
‘The Big Money Show’ panel discusses the Trump administration’s efforts to tackle fraud as Vice President JD Vance is tapped to lead an anti-fraud task force.
In a significant case of fraud, two men from Pennsylvania have admitted to repeatedly traveling from Philadelphia to Minneapolis to exploit Minnesota’s Housing Stabilization Services (HSS) program. Prosecutors revealed that the duo allegedly defrauded the program of approximately $3.5 million, utilizing artificial intelligence to fabricate false records.
The accused, Anthony Waddell Jefferson, 37, and Lester Brown, 53, reportedly established businesses in Minnesota and registered as HSS providers. Their role was to offer housing consulting, transitioning, and sustaining services to eligible individuals.
Launched in July 2020, Minnesota’s HSS program aims to assist people with disabilities, including seniors and those facing mental health or substance abuse challenges, in finding and maintaining stable housing. The Justice Department previously noted that the program had “low barriers to entry and minimal records requirements for reimbursement.”
TREASURY SECRETARY BESSENT VOWS TO LEAVE ‘NO STONE UNTURNED’ IN MINNESOTA FRAUD PROBE
The Mississippi River is seen in front of the Minneapolis skyline on Friday Feb. 7, 2025 in Minneapolis. (Matt McClain/The Washington Post via Getty Images / Getty Images)
Jefferson and Brown are accused of misappropriating approximately $3.5 million from HSS by falsely claiming to have provided services to around 230 Medicaid beneficiaries. Each man has pleaded guilty to one count of wire fraud and could face up to 20 years in prison, according to the DOJ.
“Minnesota will no longer be a haven for fraud under our watch,” stated Deputy Attorney General Todd Blanche. “The Justice Department has been investigating billions in taxpayer fraud across the country and has already successfully convicted 66 individuals and counting in Minnesota. The collaboration between the Criminal Division and the U.S. Attorney’s Office exemplifies our commitment to restoring justice and public trust while holding fraudsters accountable.”
U.S. Deputy Attorney General Todd Blanche speaks during a press conference at the US Department of Justice on Jan. 30, 2026, in Washington, D.C. (Alex Wroblewski / AFP via Getty Images / Getty Images)
AFTER SOMALI FRAUD SCANDAL, VA DEMOCRAT PUSHES BILL KILLING OVERSIGHT OF NONPROFITS
According to the DOJ, Jefferson and Brown posed as “The Housing Guys,” visiting shelters and Section 8 housing facilities to recruit Medicaid beneficiaries for HSS services that were never delivered. Jefferson allegedly employed family members and associates to create fake client notes, which falsely documented services purportedly rendered. Some of these documents indicated that Jefferson had “invented fake employees” to sign off on client notes.
The DOJ further claimed that Brown failed to maintain required notes, despite program regulations mandating such documentation. They also accused Jefferson and Brown of fabricating emails regarding supposed clients and using ChatGPT to generate fictitious client notes.
Jefferson and Brown reportedly traveled to Minneapolis from Philadelphia. (Bruce Bennett/Getty Images / Getty Images)
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Assistant Attorney General A. Tysen Duva emphasized the gravity of the situation, stating, “These defendants had no connection to Minnesota or its communities. They traveled across the country for one purpose: to prey upon and steal millions in taxpayer dollars meant for people struggling with homelessness, addiction, and disabilities. Although programs like HSS are run by the states, they are funded with federal tax dollars. The Criminal Division will not stand by while fraudsters put all Americans’ tax dollars at risk.”
‘The Big Money Show’ panel discusses the Trump administration’s efforts to tackle fraud as Vice President JD Vance is tapped to lead an anti-fraud task force.
In a significant case of fraud, two men from Pennsylvania have admitted to repeatedly traveling from Philadelphia to Minneapolis to exploit Minnesota’s Housing Stabilization Services (HSS) program. Prosecutors revealed that the duo allegedly defrauded the program of approximately $3.5 million, utilizing artificial intelligence to fabricate false records.
The accused, Anthony Waddell Jefferson, 37, and Lester Brown, 53, reportedly established businesses in Minnesota and registered as HSS providers. Their role was to offer housing consulting, transitioning, and sustaining services to eligible individuals.
Launched in July 2020, Minnesota’s HSS program aims to assist people with disabilities, including seniors and those facing mental health or substance abuse challenges, in finding and maintaining stable housing. The Justice Department previously noted that the program had “low barriers to entry and minimal records requirements for reimbursement.”
TREASURY SECRETARY BESSENT VOWS TO LEAVE ‘NO STONE UNTURNED’ IN MINNESOTA FRAUD PROBE
The Mississippi River is seen in front of the Minneapolis skyline on Friday Feb. 7, 2025 in Minneapolis. (Matt McClain/The Washington Post via Getty Images / Getty Images)
Jefferson and Brown are accused of misappropriating approximately $3.5 million from HSS by falsely claiming to have provided services to around 230 Medicaid beneficiaries. Each man has pleaded guilty to one count of wire fraud and could face up to 20 years in prison, according to the DOJ.
“Minnesota will no longer be a haven for fraud under our watch,” stated Deputy Attorney General Todd Blanche. “The Justice Department has been investigating billions in taxpayer fraud across the country and has already successfully convicted 66 individuals and counting in Minnesota. The collaboration between the Criminal Division and the U.S. Attorney’s Office exemplifies our commitment to restoring justice and public trust while holding fraudsters accountable.”
U.S. Deputy Attorney General Todd Blanche speaks during a press conference at the US Department of Justice on Jan. 30, 2026, in Washington, D.C. (Alex Wroblewski / AFP via Getty Images / Getty Images)
AFTER SOMALI FRAUD SCANDAL, VA DEMOCRAT PUSHES BILL KILLING OVERSIGHT OF NONPROFITS
According to the DOJ, Jefferson and Brown posed as “The Housing Guys,” visiting shelters and Section 8 housing facilities to recruit Medicaid beneficiaries for HSS services that were never delivered. Jefferson allegedly employed family members and associates to create fake client notes, which falsely documented services purportedly rendered. Some of these documents indicated that Jefferson had “invented fake employees” to sign off on client notes.
The DOJ further claimed that Brown failed to maintain required notes, despite program regulations mandating such documentation. They also accused Jefferson and Brown of fabricating emails regarding supposed clients and using ChatGPT to generate fictitious client notes.
Jefferson and Brown reportedly traveled to Minneapolis from Philadelphia. (Bruce Bennett/Getty Images / Getty Images)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Assistant Attorney General A. Tysen Duva emphasized the gravity of the situation, stating, “These defendants had no connection to Minnesota or its communities. They traveled across the country for one purpose: to prey upon and steal millions in taxpayer dollars meant for people struggling with homelessness, addiction, and disabilities. Although programs like HSS are run by the states, they are funded with federal tax dollars. The Criminal Division will not stand by while fraudsters put all Americans’ tax dollars at risk.”
