Two Nigerian nationals residing in the United States, Christopher Falade and his son, Emmanuel Falade, along with six others, have been indicted for wire fraud in connection with Minnesota’s Housing Stabilization Services (HSS) program.
The U.S. Department of Justice announced the charges on Thursday, describing the case as part of a “massive housing stabilization fraud scheme.”
According to federal prosecutors, the Falades operated Faladcare Inc. as a registered provider within the HSS program, which was designed to offer housing consultation, transition assistance, and support services to vulnerable individuals.
Instead of delivering these services, Christopher Falade, 62, and Emmanuel Falade, 32, allegedly conspired with others to submit inflated reimbursement claims.
The group reportedly siphoned off approximately $2.2 million in taxpayer funds for personal use.
“Over the course of years, the Falades and their conspirators created and submitted Program reimbursement claims that were inflated and fraudulent. By doing so, Faladcare received Program payments far exceeding the HSS services they had actually provided,” the DoJ said.
The Falades allegedly claimed to have provided services to roughly 100 beneficiaries, asserting entitlement to over $2.2 million in reimbursements.
According to the statement, a significant portion of the fraud proceeds was funneled to co-conspirators, including employees of their company, Faladcare.
The individuals charged in connection with the scheme include Moktar Hassan Aden (30), Mustafa Dayib Ali (29), Khalid Ahmed Dayib (26), Abdifitah Mohamud Mohamed (27), Asad Ahmed Adow (26), and Anwar Ahmed Adow (25).
Announcing the charges, Acting U.S. Attorney Joseph H. Thompson described the case as “the first wave of charges in a massive fraud targeting Minnesota’s housing stabilization program.”
He emphasized that the operation involved “schemes stacked upon schemes,” siphoning funds intended to support vulnerable communities.
“It feels never-ending. I have spent my career as a fraud prosecutor, and the depth of the fraud in Minnesota takes my breath away,” Mr Thompson explained. “The fraud must be stopped.”
Follow the Parallel Facts channel on WhatsApp: https://whatsapp.com/channel/0029VaCQSAoHgZWiDjR3Kn2E
