U.S. v. Jefferson (25-cr-483) — Guilty Pleas in $3.5M Housing Stabilization Services Fraud (Chozen Runner LLC)

Source: U.S. District Court, District of Minnesota · Document date: 2025-12-15 · Type: Court Filing · Case number: 0:25-cr-00483

U.S. v. Jefferson (D. Minn. 25-cr-483) — guilty pleas of Anthony Waddell Jefferson and Lester Brown to $3.5M in fraudulent claims billed to Minnesota Medicaid Housing Stabilization Services (HSS) through Chozen Runner LLC and Retsel Real Estate LLC. The first federal Minnesota Medicaid case to involve AI-generated false evidence submitted in response to investigators.

Significance: Foundational HSS-fraud case. The defendants are the 'fraud tourists' described by DOJ as Philadelphia-based operators with no Minnesota clinical infrastructure. Used as the comparison case in the OMART/Zion HSS Philadelphia investigation and in the HSS-shutdown timeline analysis.

Tags: HSS, Housing Stabilization Services, fraud tourists, Jefferson, Chozen Runner, AI evidence, PACER