Two Minnesota Men Plead Guilty to Defrauding Medicaid Housing Program

Two men from the Twin Cities area in Minnesota have entered guilty pleas for orchestrating a scheme that defrauded a state Medicaid program out of more than $500,000. The federal case centers on fraudulent claims submitted for housing stabilization services that were never actually delivered to participants.

The U.S. Attorney’s Office for the District of Minnesota and federal law enforcement agencies announced the pleas following an investigation into the now-defunct Housing Stabilization Services program. One defendant entered a guilty plea on September 24, 2026, and the second entered his plea on October 1, 2026.

How the Housing Program Fraud Worked

According to court documents, the two men enrolled a company named Pristine Health LLC as a Medicaid provider. They pitched the service by promising to help people with disabilities, seniors, and individuals suffering from mental illnesses and substance use disorders find and maintain housing.

Instead of providing genuine assistance, the defendants submitted false claims to Medicaid for services that were never performed and inflated claims to receive higher reimbursements. Prosecutors noted that Pristine Health enrolled approximately 90 Medicaid beneficiaries into the program, including some individuals who never agreed to receive the services. In total, the company billed Minnesota Medicaid more than $820,000.

Federal Charges and Potential Penalties

Both men pleaded guilty to one count of wire fraud. Wire fraud is a federal crime that involves using electronic communications, such as the internet or telephone, to carry out a scheme to steal money or property.

Under the law, each defendant faces a maximum penalty of 20 years in prison. A federal district court judge will determine the final sentences after reviewing the U.S. Sentencing Guidelines and other statutory factors. The court will set official sentencing dates at a later time.

Impact on Public Programs and Taxpayers

Federal officials involved in the case emphasized that benefit program fraud harms society by draining resources away from citizens who truly need assistance. Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division described the crime as a betrayal of vulnerable populations, including the elderly and mentally ill.

The prosecution is part of a broader, coordinated federal effort involving the FBI, the Internal Revenue Service Criminal Investigation division, and the Department of Health and Human Services Office of Inspector General. These agencies continue to investigate health care and social services fraud to protect public funds.

What This Means for Everyday People

For ordinary citizens, health care and housing program fraud directly threatens the availability of public resources meant for society’s most vulnerable members. Beneficiaries of social services programs should monitor their benefits and medical statements to ensure that providers are not billing the government for services that were never received. If you suspect that a healthcare or social services provider is submitting fraudulent claims to public programs, you can report the activity to federal or state authorities. When facing complex legal investigations or potential criminal charges, consulting a qualified defense attorney is essential to protect your rights.

This article is general information based on U.S. Department of Justice and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published October 3, 2026.