US Department of Justice Charges Nigerian Father and Son,6 Others in $281 Housing Fraud in Minnesota

Eight defendants have been federally charged with wire fraud for their roles in a massive housing stabilization fraud scheme, announced Acting U.S. Attorney Joseph H. Thompson.

“Today we announce the first wave of charges in a massive fraud in Minnesota’s housing stabilization program,” said Acting U.S. Attorney Joseph H. Thompson. “I want to be clear on the scope of the crisis. What we see are schemes stacked upon schemes, draining resources meant for those in need. 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. The fraud must be stopped.”

The Case Against the Nigerians

ADVERTISEMENT

United States v. Christopher Falade, et al., 25-cr-351 (JMB/DJF)

(Faladcare Inc.)

Defendant Christopher Adesoji Falade, age 62
Defendant Emmanuel Oluwademilade Falade, age 32
Christopher Falade and his son, Emmanuel Falade, worked together to run Faladcare Inc. as a provider in the HSS Program.

The Falades, along with their employees at Faladcare, were supposed to provide housing consulting, transitioning, and sustaining services to qualifying people in need.

Instead, 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. In all, the Falades claimed to service about 100 different beneficiaries and for such services claimed to be entitled to over $2.2 million. The Falades diverted much of their fraud proceeds to their conspirators, including to their Faladcare employees.

“Fraud in the Housing Stabilization Services program not only drains money from hardworking taxpayers, it also deprives vulnerable populations of resources to maintain safe housing,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “Exploiting this program undermines the financial and physical security of the community amid a housing and addiction crisis. The FBI is relentless in working with our law enforcement partners to root out this fraud and prosecute those who enrich themselves at the expense of the community.”

“The charges filed today represent another big blow to organized program fraud in Minnesota,” said Adam Jobes, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “The Minnesota Housing Stabilization Service program was supposed to be a groundbreaking resource to provide stability, assistance, and dignity to seniors and individuals with disabilities. Instead, program funds were diverted to the pockets of greedy opportunists. IRS-CI is proud to partner with our federal and state agencies in investigations like these and will continue to provide our expertise and resources to fight back against those who have chosen to make their living exploiting some of our most vulnerable citizens. The public has the right to expect their hard-earned tax dollars are being used judiciously.”

“The fraud detailed in the criminal charges announced today reflects a calculated effort on the part of the defendants to significantly exploit a program designed to serve vulnerable populations and taxpayers at large” said Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “Our agency remains committed to working together with our federal and state law enforcement partners to identify and bring to justice those who defraud our nation’s healthcare programs.”

“Funding provided through Housing Stabilization Services is intended to help Minnesotans achieve a stable, housed future. When criminals selfishly defraud these programs they are not only committing a crime, but they are depriving others of services that can be life-changing, and defrauding all taxpaying Minnesotans,” Minnesota Bureau of Criminal Apprehension Superintendent Drew Evans said.

This case is the result of an investigation conducted by the Federal Bureau of Investigation, Health and Human Services, Office of Inspector General, and the Internal Revenue Service – Criminal Investigation, with assistance from the Bureau of Criminal Apprehension, the Attorney General’s Medicaid Fraud Control Unit, and the United States Postal Inspection Service.

Acting U.S. Attorney Joseph H. Thompson and Assistant U.S. Attorney Daniel W. Bobier are prosecuting the case.

An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.