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More Somali Blowback: Brothers Plead Guilty in $4 Million Minnesota Housing Scam

by Calista Hayashi
November 27, 2025
in News, Original
Anwar Adow
Discern Report

Federal prosecutors in Minnesota have secured guilty pleas from two Somali brothers accused of siphoning nearly $4 million in taxpayer-funded housing subsidies through a web of false claims and sham operations. The case adds fuel to a growing fire of welfare fraud allegations centered in the state’s Somali communities, where investigators say billions have vanished from programs meant to aid the vulnerable.

Anwar Adow and Asad Ahmed Adow, both in their 30s and residents of the Minneapolis area, admitted to defrauding the Housing Stabilization Services (HSS) program by inventing clients and fabricating housing deals. According to court documents, the brothers operated Leo Human Services and Liberty Plus LLC, claiming to assist individuals with relocation costs.

In reality, they pocketed reimbursements for nonexistent services, using the cash for personal gain. “The defendants exploited a program designed to help vulnerable people secure housing by submitting fraudulent claims for services that were never provided,” Acting U.S. Attorney Joseph Thompson said in a statement.

This isn’t an isolated incident. The pleas come on the heels of the first prison sentence in the massive Feeding Our Future scandal, where over 70 Somali migrants face charges for stealing $250 million from child nutrition funds. Prosecutors describe it as one of the largest frauds against the U.S. Department of Agriculture’s programs. Just last week, a 77th indictment was unsealed in that case, involving shell companies that funneled money overseas.

The scale of these schemes points to deeper issues in Minnesota’s welfare system, which has ballooned under Democratic leadership. The HSS program, launched in 2020 to support those facing homelessness, was projected to cost $2.6 million annually. By mid-2025, payouts hit $61 million—on pace for a record—and officials shut it down in August amid fraud probes.

Similar patterns emerged in a $14 million autism services scam, where Asha Farhan Hassan, also charged in Feeding Our Future, allegedly issued fake diagnoses to Somali children for Medicaid billing. Autism providers in the state exploded from 41 in 2020 to 328 by 2025, many tied to the Somali community, leading to diagnoses at triple the state average for young Somali kids.

What makes these cases particularly galling is where the money ended up. Federal counterterrorism sources, as reported by City Journal, trace millions in stolen funds to Somalia via hawala networks—informal money transfer systems rooted in clan ties. There, Al-Shabaab, the Al-Qaeda affiliate, takes a cut from incoming remittances, regardless of intent.

“The largest funder of Al-Shabaab is the Minnesota taxpayer,” one source bluntly stated. In 2023 alone, the Somali diaspora sent $1.7 billion home, exceeding Somalia’s national budget—much of it allegedly from U.S. welfare.

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President Trump declared on a Truth Social post last Friday, he declared Minnesota “a hub of fraudulent money laundering activity” under Governor Tim Walz, terminating Temporary Protected Status for Somalis in the state effective immediately. “Somali gangs are terrorizing the people of that great State, and BILLIONS of Dollars are missing. Send them back to where they came from,” Trump wrote.

Republican lawmakers, including Rep. Brad Finstad, echoed the call, telling Congress that tracked funds led straight to Al-Shabaab. House Speaker Mike Johnson piled on via X: “Millions in stolen Minnesota welfare dollars have been funneled to Al-Shabaab—an ISIS-aligned TERROR group? This happened because Democrats built a system so loose, so corrupt, and so politically timid that fraudsters exploited it.”

Critics point to a toxic mix: lax oversight in a “generous” welfare regime and clan-based loyalties that prioritize overseas networks over American accountability. As one fraud investigator put it, “They have taken advantage of one of the most generous countries in the world and one of the most generous states in that country.”

Minnesota’s Somali population, the largest in the U.S., has reshaped local politics—think Rep. Ilhan Omar’s district—but at what cost? Ties to figures like former Minneapolis Mayor Jacob Frey aide Abdi Nur Salah, indicted in HSS fraud, raise questions about how deep the rot goes.

Governor Walz’s office claims cooperation with federal probes, but the numbers tell a different story: billions lost on his watch, with everyday Minnesotans footing the bill for everything from fake meals to phantom therapies. As deportations ramp up and indictments mount, the question lingers—how much more has slipped through the cracks, and who will make it right for the taxpayers left holding the bag?






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Tags: LedeMinnesotaTop Story
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Comments 2

  1. Rob in MN says:
    3 months ago

    DemonRats caused all of this. The A-hole Governor Tampon Tim is 100% responsible for every penny. Yes there are hundreds of people involved, mostly foreigners, but that does not absolve him of full responsibility. Billions and billions of hard earned tax dollars, GONE. And all this coming after AWALZ pissed away a $16 billion dollar tax “surplus”. Disgusting scumbag.

    Reply
    • bert33 says:
      3 months ago

      So, STOP VOTING CRAPOCRAT, Rob, or next year will be same-same throw crapocrats OUT

      Reply

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