‘Fraud tourists’ plead guilty in Minnesota fraud case
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.”
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.
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.”
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.
70-79, M
