(The Center Square) – Fraud investigations continue in Minnesota as the U.S. Department of Justice announced today two “fraud tourists” have pleaded guilty to stealing millions from taxpayers in the North Star state.
The two Pennsylvania men defrauded Minnesota’s Housing Stabilization Services program of about $3.5 million.
Initially launched in 2020 to help seniors and people with disabilities find and maintain housing, the state ended the short-lived program in 2025 after it saw an exponential growth in payouts with little oversight. Initially estimated to cost less than $3 million each year, it swelled to about $104 million in 2024.
The case, which is part of a collaboration between the U.S. Attorney’s Office for the District of Minnesota and the DOJ’s Criminal Division’s Fraud Section, is just one of many currently being pursued by the Trump administration.
“Minnesota will no longer be a haven for fraud under our watch,” said U.S. Deputy Attorney General Todd Blanche. “The Justice Department has been investigating billions in taxpayer fraud across the country and has already successfully convicted 66 individuals and counting in Minnesota.”
Federal officials have promised more charges.
“Criminal fraud not only robs taxpayers – it shatters trust in our institutions. Under President Trump’s leadership, yesterday’s convictions are just the beginning,” said U.S. Attorney General Pamela Bondi. “Our prosecutors will work tirelessly to unravel criminal fraud schemes and charge their perpetrators in Minnesota and across the country.”
According to court documents, Anthony Waddell Jefferson and Lester Brown set up businesses in Minneapolis and enrolled as HSS program providers. Despite both living in Philadelphia, they allegedly would occasionally travel to Minnesota to find homeless individuals and others to sign up for housing assistance they would not use. Jefferson and Brown then pocketed the payouts.
In total, from February 2022 through June 2025, Jefferson and Brown stole about $3.5 million – claiming to help about 230 clients. Both men pleaded guilty to one count of wire fraud, which carries a maximum penalty of 20 years in prison.
While a Minnesota-based program, taxpayers across the nation were also helping fund the HSS program as it was part of the state’s Medicaid program.
“These defendants had no connection to Minnesota or its communities. They traveled across the country for one purpose: to prey upon and steal millions in taxpayer dollars meant for people struggling with homelessness, addiction and disabilities,” said DOJ Assistant Attorney General A. Tysen Duva. “Although programs like HSS are run by the states, they are funded with federal tax dollars. The Criminal Division will not stand by while fraudsters put all Americans’ tax dollars at risk.”
The firestorm first broke about the Minneapolis fraud cases following the release of reports in late November which alleged that millions of taxpayer dollars had been fraudulently stolen from the Minnesota welfare system and then sent to the Somali-based terror group Al-Shabaab.
That was according to original reporting from Chris Rufo and Ryan Thorpe that was published in City Journal. It detailed how, throughout the fall, the then-acting U.S. Attorney for the District of Minnesota Joe Thompson, was investigating several different cases of fraud in the state. At that time, Thompson called it a “crisis.”
There have been many federal committee hearings regarding the fraud and Minnesota Gov. Tim Walz and Attorney General Keith Ellison will both appear before the U.S. House Oversight Committee in March.
In one hearing regarding the ongoing Minnesota fraud scandal in January, Democrats on the committee defended Minnesota Democrats and accused President Donald Trump of having a double standard when it comes to addressing fraud.
“Minnesota lawmakers have also taken steps to reduce fraud in their state, strengthening the state’s ability to stop potential fraud sooner and improving investigations to hold those scammers accountable. President Trump has taken a very different approach to fraud,” said U.S. Rep. Lucy McBath, D-Georgia and ranking member on the committee. “We know this hearing is not really about fraud. It is about trust. The Trump administration does not want you to trust these programs, because if you don’t trust them, they’re easier to destroy.”
