PHILADELPHIA, PA (WOWO) Two men from Philadelphia, Anthony Waddell Jefferson, 37, and Lester Brown, 53, pleaded guilty to defrauding Minnesota’s Housing Stabilization Services (HSS) program of approximately $3.5 million, prosecutors announced.

The defendants repeatedly traveled to Minneapolis, marketed themselves as “The Housing Guys” at homeless shelters and Section 8 housing facilities, and used artificial intelligence to fabricate client notes and emails. The fraudulent claims were submitted for roughly 230 Medicaid beneficiaries who never received the services.

Jefferson allegedly hired family and associates to create fake records, sometimes inventing employees entirely. Brown failed to maintain required documentation. Both pleaded guilty to wire fraud and face up to 20 years in prison.

The Justice Department emphasized that while state programs like HSS are managed locally, they are funded with federal dollars. Officials said the case highlights the department’s commitment to preventing fraud against taxpayer-funded programs.