Two Philadelphia Men Admit To AI-Assisted $3.5M Housing Aid Scam In Minnesota

This will be the first of many AI scams of its kind, we predict...

Two men from Pennsylvania admitted to repeatedly flying from Philadelphia to Minneapolis to exploit Minnesota’s Housing Stabilization Services (HSS) program, stealing about $3.5 million, according to prosecutors. Authorities say they used artificial intelligence to forge records and falsely bill for services, according to Fox News.

Anthony Waddell Jefferson, 37, and Lester Brown, 53, registered businesses as HSS providers, claiming they offered housing support and transition services. In reality, officials say much of the work never happened.

Launched in 2020, HSS helps people with disabilities, seniors, and those struggling with mental health or addiction secure housing. The Justice Department has noted the program had “low barriers to entry and minimal records requirements.”

Attorney General Pam Bondi said, “Criminal fraud not only robs taxpayers — it shatters trust in our institutions… Our prosecutors will work tirelessly to unravel criminal fraud schemes.”

Fox News writes that prosecutors allege the pair billed Medicaid for services supposedly provided to about 230 clients. Both men pleaded guilty to wire fraud and face up to 20 years in prison.

Deputy Attorney General Todd Blanche stated, “Minnesota will no longer be a haven for fraud under our watch,” adding that dozens of convictions have already been secured in the state.

Investigators say Jefferson and Brown promoted themselves as “The Housing Guys” at shelters and Section 8 housing sites to recruit clients. Jefferson allegedly hired relatives and associates to produce fake service notes, sometimes using invented employee names. Brown reportedly failed to keep required records. Authorities also say the men fabricated emails and used ChatGPT to generate false documentation.

Assistant Attorney General A. Tysen Duva said, “They traveled across the country for one purpose: to prey upon and steal millions in taxpayer dollars,” emphasizing that such schemes threaten federally funded programs nationwide.