A man pleaded guilty in federal court Thursday to bilking a Minnesota program meant to provide housing to vulnerable people, the latest admission in an ongoing probe of fraud investigations within state services.
Anwar Adow, 25, admitted he submitted claims that “significantly overrepresented” the hours of services provided by his company, Liberty Plus LLC, in order to receive more taxpayer funds through the state’s embattled Housing Stabilization Services program.
Adow replied matter-of-factly as he acknowledged his role submitting inflated claims for reimbursement in the scheme. Adow affirmed he told his employees to bill as much as they could and “made clear to those employees that he would not scrutinize the purported billable hours.” In total, Liberty Plus claimed to serve roughly 200 beneficiaries, for which the entity received $1.2 million in Medicaid funds.
“And you diverted much of those proceeds among a number of conspirators?” asked Assistant U.S. Attorney Daniel Bobier.
“Correct,” Adow responded.
Adow confirmed he steered the fraudulent funds to Liberty Plus employees and toward luxury purchases, including a leased 2023 Mercedes Benz. Some of the funds went to his brother, Asad Adow, who also faces charges in the fraud investigation.
Adow is the first person to be convicted in the housing fraud scheme since the U.S. Attorney’s Office in Minneapolis charged eight suspects in September. Federal prosecutors said the defendants followed a similar pattern of identifying Medicaid-eligible people, many of whom were exiting addiction treatment centers, and signing them up to receive services through the housing program. The defendants then billed for services they did not provide.
“Many of these companies operated out of dilapidated storefronts or rundown office buildings that were full of other fraudulent health care companies,” said Joseph H. Thompson, acting U.S. Attorney at the time. He noted the group is just the “first wave” of defendants and said more charges are forthcoming.
