Fraud Scheme Unfolds in Minnesota Investigations
Minneapolis, MN – A significant fraud scheme is currently unraveling in Minnesota, estimated to have cost state and federal taxpayers at least $1 billion. In light of this, sources have found various discrepancies in funding programs, such as “Feeding Our Future,” highlighting the scandal’s extensive nature.
At the center of this controversy is the Griggs Midway Building. Acting U.S. Attorney Joseph H. Thompson noted an “unusual concentration” of fraudulent activity related to the HSS program, with 22 entities registered at this location. Thompson characterized these groups as “purely fictitious companies set up for the sole purpose of deceiving the system.”
These fraudulent companies managed to bill Medicaid for an astounding $8 million from January 2024 to May 2025.
Upon inspection of the St. Paul building, it became apparent that a sizable section on its south side was completely abandoned. Above the entrance hung a sign announcing available spaces for rent. A few men congregated at the door, but when approached, they claimed not to speak English.
Interestingly, the ground floor on the west side appeared to host several legitimate businesses, including a hair salon and financial services catering to African immigrants.
After a major FBI raid at the building, the Minnesota Department of Human Services launched about 40 investigations into providers linked to the Griggs Midway Building. Among these, Brilliant Minds Services was highlighted as one of the state’s costliest HSS providers last year. They allegedly submitted more than $2.3 million in fraudulent claims from their Griggs Midway location alone.
Four individuals—Mokhtar Hassan Aden, 30; Mustafa Dave Ali, 29; Khalid Ahmed Dave, 26; and Abdifita Mohamud Mohamed, 27—have been charged with fraud. Mohamed, noted as the owner of another fraudulent business, Foundation First Services LLC, was implicated in these activities.
In one instance, a second-floor location above a sushi restaurant raised some eyebrows. Its entrance was locked, leaving doubts about whether the address was merely a ruse. On the empty second floor, a sign read, “No kings, no fascists,” awkwardly facing a snowy street.
The investigation took the team to another site, Windsor Plaza, where a red canopy marked the main entrance. Inside, the directory was filled with genuine businesses like medical clinics and wealth management services.
However, when attempting to locate Room 150, referenced in fraudulent claims, it became evident that this particular office did not exist. Not only was the charge a scam, but the address was fictitious.
A similar pattern emerged at another address, 9120 Baltimore St N. A claim stated operations from Suite 100, but the building itself was just a stone pillar surrounded by a corporate parking lot, with no suites or apartment numbers in sight. The only visible business was a dental clinic.
Further investigations revealed other locations, such as 2756 Douglas Dr N, which housed legitimate services but did not include the fraudulent entities reported. A visit to 1541 Como Ave uncovered a rusted garage near a church that showed signs of neglect. Locals mentioned its use as a pop-up gym, but it was unclear whether any fraudulent activity was actually occurring there.
Another visit to 4601 E 54th St revealed an empty parking lot, and 2720 E Lake St was found boarded up, adorned with graffiti and signs of long-term disuse.
Republican Senator Mark Colan voiced concerns about the scale of the fraud, stating, “Most of that $500 million hasn’t even served a single meal.” He pointed to a legislative audit revealing that property owners claiming to operate businesses could not confirm their existence with the Department of Education. Even after being told these businesses were non-existent, funding continued to be disbursed, showcasing a troubling oversight.
