Two men from Pennsylvania have pleaded guilty to charges related to defrauding Minnesota’s Housing Stability Services (HSS) program, according to prosecutors. Anthony Waddell Jefferson, 37, and Lester Brown, 53, are accused of traveling from Philadelphia to Minneapolis and stealing around $3.5 million through fraudulent claims.
They allegedly established a business in Minnesota, positioning themselves as HSS providers meant to offer housing consultations and relocation services. This program, which started in July 2020, was designed to help individuals with disabilities, including the elderly and those facing mental health or substance abuse challenges, to secure and keep housing. The HSS program has low-entry requirements, making it susceptible to exploitation.
Attorney General Pam Bondi commented on the case, highlighting that fraud erodes public trust, and emphasized a commitment to address such criminal activities under the current administration. She stated that these guilty pleas mark the beginning of ongoing efforts to combat fraud in Minnesota and beyond.
Jefferson and Brown falsely claimed to have provided services to about 230 Medicaid recipients, each facing a potential sentence of up to 20 years for wire fraud. Deputy Attorney General Todd Blanche declared Minnesota will no longer tolerate such fraudulent behaviors, pointing out that the Justice Department has already convicted numerous individuals involved in similar schemes.
The two men marketed themselves as “The Housing Guys,” reportedly visiting shelters and Section 8 housing to lure Medicaid recipients into enrollments that were ultimately fictitious. Jefferson is accused of hiring family and friends, creating bogus customer records, and even fabricating emails to support their claims using artificial intelligence tools like ChatGPT. Brown allegedly failed to keep proper records, despite program requirements that mandated documentation.
Assistant Attorney General A. Theisen Duva stressed that the defendants had no ties to Minnesota, asserting their sole intent was to exploit the system and pilfer taxpayer money meant for vulnerable communities grappling with issues like homelessness and addiction.
