Two Pennsylvania men pleaded guilty to defrauding Minnesota’s Medicaid housing program of $3.5 million by enrolling homeless people falsely.

Two Pennsylvania men, Anthony Waddell Jefferson and Lester Brown, pleaded guilty to wire fraud for defrauding Minnesota’s Housing Stabilization Services program of about $3.5 million. The program, part of the state’s Medicaid system, was designed to help seniors and people with disabilities find housing but grew rapidly with little oversight. The men, based in Philadelphia, created Minnesota businesses, recruited homeless individuals to enroll without using services, and submitted fake documents to claim funds. Their actions, part of a larger federal crackdown on fraud, have drawn national attention, with ongoing congressional hearings and allegations of funds being diverted to Al-Shabaab under investigation. Sentencing dates are pending.