Man pleads guilty to defrauding Minnesota Housing Stabilization Services program

A man accused of defrauding a Minnesota program meant to help people with disabilities find and maintain housing pleaded guilty on Tuesday.

Khalid Dayib is one of several people allegedly tied to Brilliant Minds Services, LLC, which was one of the state's top-billing Housing Stabilization Services providers in 2024. 

The company purported to offer consulting, transitioning and sustaining services from an office suite in St. Paul, submitting $2.3 million in reimbursement claims from September 2022 to April 2025, the U.S. Department of Justice said.

However, Dayib and his alleged co-conspirators each pocketed between $300,000 and $400,000 for personal use between April 2023 and May 2025. They also shared a credit card, accruing nearly $500,000 to "enhance their personal lifestyles," the DOJ said.

Dayib, according to the DOJ, filed the paperwork to enroll Brilliant Minds as an HSS provider. He was charged with one count of wire fraud.

The HSS program was estimated to cost $2.5 million a year when it launched in 2020, but by 2024 it cost $104 million. Federal regulators terminated the HSS program in October after an investigation found it was "riddled with fraud." 

A sentencing date for Dayib has not been set.