Minnesota $1 Billion Fraud Scheme Uncovered: Fake Offices and Phony Firms at Single Address
ST. PAUL, Minn. — A sprawling fraud scheme that could cost taxpayers over $1 billion has come to light in Minnesota, centered around a single building in St. Paul housing dozens of fake businesses. An investigation by Fox News Digital uncovered that 22 fraudulent entities involved in the state’s Health and Human Services (HSS) program were registered to the Griggs-Midway Building, a location described by Acting U.S. Attorney Joseph H. Thompson as a hub of “purely fictitious companies solely created to defraud the system.”
These sham companies collectively billed Medicaid approximately $8 million between January 2024 and May 2025, according to federal prosecutors. The Griggs-Midway Building, located in a commercial area of St. Paul, shows signs of abandonment on its southern side, with a banner advertising open office space prominently displayed. Meanwhile, the western side houses legitimate businesses such as a hair salon and a financial support service for African immigrants.
Following extensive searches by the FBI, the Minnesota Department of Human Services launched around 40 investigations into providers linked to the building. Among the fraudulent operators was Brilliant Minds Services, which submitted over $2.3 million in false claims, ranking it as one of the state’s highest-billing HSS providers last year.
Four individuals have been charged in connection with the scheme: Moktar Hassan Aden, Mustafa Dayib Ali, Khalid Ahmed Dayib, and Abdifitah Mohamud Mohamed. Mohamed was identified as the owner of one of the implicated entities. Authorities allege these defendants orchestrated the submission of fraudulent Medicaid claims through the fictitious companies.
Former Assistant U.S. Attorney Joe Teirab, who worked on the Minneapolis fraud case, described the scandal as a “deeply embedded” abuse of the system that exploited loopholes in oversight. The case has drawn attention to the vulnerabilities in state and federal programs intended to assist vulnerable populations, including the Feeding Our Future initiative, which also funneled money to some of these questionable entities.
The U.S. Attorney’s Office for the District of Minnesota has emphasized the need for stringent measures to prevent similar frauds from recurring. This case highlights the challenges faced by agencies tasked with monitoring the disbursement of public funds and ensuring they reach legitimate recipients.
Medicaid fraud remains a persistent issue nationwide, with the Office of Inspector General for the Department of Health and Human Services reporting billions lost annually to fraudulent claims. The Minnesota scandal underscores the importance of robust verification processes and interagency cooperation.
As investigations continue, officials urge the public and providers to remain vigilant. The Federal Bureau of Investigation continues to lead efforts to dismantle fraudulent networks and hold perpetrators accountable. The fallout from this case is expected to prompt reforms aimed at tightening controls over Medicaid and related assistance programs in Minnesota and beyond.
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