Man pleads guilty in "massive" scheme to defraud Minnesota housing program
A man has pleaded guilty to wire fraud in what federal prosecutors have called a "massive" scheme to defraud a Minnesota housing program, according to court documents filed Thursday.
Anwar Ahmed Adow pleaded guilty to one count of the charge. He was one of eight people who received millions in Medicaid money from Housing Stabilization Services, according to acting U.S. Attorney Joseph Thompson. The other seven have also been charged with wire fraud.
Housing Stabilization Services is a Medicaid program started in 2020 that aimed to help people with disabilities and addictions find and maintain housing, court records said. The program was under the umbrella of the Minnesota Department of Human Services and has previously been accused of being the target of widespread fraud.
According to the complaint, Adow was the owner and principal of Liberty Plus LLC in Roseville, Minnesota. The business was registered with the state "in or about" November 2022, documents said.
Adow and his employees were supposed to provide housing consulting, transitioning and sustaining services to qualifying people in need, according to court documents. In November 2024, Adow applied with the state for Liberty Plus to operate as a housing services provider and then told his employees to "bill as much as they could," charges said. Adow said he "would not scrutinize" the billable hours his employees turned in to him.
"In this way, Adow incentivized his employees, who were paid hourly wages, to inflate their hours," the complaint said.
Liberty Plus, based on "inflated and fraudulent claims," received more than $1.2 million in Medicaid funds for services reportedly provided to around 200 people, charges said. Adow diverted much of that money to his co-conspirators and employees. He also spent some of the money on investments and to lease a 2023 Mercedes-Benz CLS, according to court documents.
Adow was initially charged on Sept. 18 with four counts of wire fraud. Thompson said at that time it was "just the first round of indictments" connected to HHS, and future charges will come in "waves."
The state said it's working to terminate the housing program altogether because it "does not have the necessary controls to stop bad actors."
A sentencing date for Adow has not yet been scheduled.
Note: The above video first aired on Sept. 18, 2025.