“I’ve never got an hour of help."
That’s how Steven Smith sums up his experience with Leo Human Services, the for-profit agency that — according to Medicaid billing records reviewed by KARE 11 — charged taxpayers thousands of dollars for supposedly helping him find and keep a home.
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Smith, who’d just finished inpatient treatment for substance-use disorder, says he only received a few phone calls and never met anyone in person. Yet the company still sent a bill to Minnesota’s Medicaid program.
Smith’s situation is part of a broader KARE 11 investigation that is shaking confidence in Minnesota’s Housing Stabilization Services (HSS) program, designed to help people with disabilities — including those with mental health issues and substance-use disorders — to find and maintain housing.
Since its launch in July 2020, this initiative has already cost taxpayers $248 million, but investigations show it may not be reaching the vulnerable Minnesotans that it was designed to help.
Allegations of forged signatures
The Minnesota Department of Human Services (DHS) — which oversees the HSS — told KARE 11 the housing and transition services are intended to help seniors and people with disabilities to get hands-on assistance with finding and maintaining housing. According to state rules, at least half of those services must be delivered in person.
But Smith says he received only a handful of phone calls. His girlfriend, Rachel Lien, has a similar story after Leo Human Services charged Medicaid $14,000 in her name.
"I had never heard of this company," Lien told KARE 11. “I never met with them. I never talked to them on the phone.”
Billing data shows that Leo Human Services — run by Asad Adow out of a strip-mall office in Brooklyn Park — billed Medicaid $1.2 million in 2024.
When KARE 11 asked Leo Human Services for Smith’s records, the paperwork included an electronic signature that Smith insists he never wrote. The signature also misspelled his name as “Steven Jr Smith.”
“Why would I say that I’m Steven Jr Smith?” Smith asked. “My middle name is actually Steven Dwayne Smith.”
KARE 11 investigators took a look at the metadata taken from the PDF document that Smith allegedly signed and found that Smith’s electronic signature — which was dated August 28, 2023 — was actually written the following day on August 29.
The signature was also reportedly authored by someone who goes by the name of “Wats Hanin.” KARE 11 was unable to locate anyone by that name, and under DHS rules, providers are barred from signing documents for clients.
When KARE 11 reporters confronted Adow in the parking lot outside his office, the latter denied any wrongdoing.
“People say you’re not doing work, that you’re billing thousands of dollars for work that’s not being done,” said KARE 11 reporter A.J. Lagoe. “I’m doing everything correctly,” Adow insisted before climbing into his car and driving off.
Fraud worries around HSS are hardly new. According to KARE 11, a 2024 report from the housing nonprofit Hearth Connection warned of “predatory activity to enroll individuals without their knowledge,” including recruiters waiting around emergency shelters and misrepresenting their companies’ offerings.
In a Senate hearing in January 2025, then-DHS Commissioner Jodi Harpstead downplayed the issue, saying “there’s a lot of rumors of fraud more than there is actual fraud.” She resigned from her position just weeks later.
Her interim successor, Shireen Gandhi, has taken a different tack: DHS now lists HSS as a “high-risk” service, subjecting providers to fingerprint checks and unannounced site visits. She confirmed 40 active fraud investigations are underway.
“It’s clear that these critical services need more oversight,” Gandhi said in a press release.
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What to do if you think you’ve been targeted
When providers siphon off Medicaid dollars, the people HSS is meant to serve risk losing legitimate help at a time when affordable housing is scarce. It also breaks the public’s trust in legitimate services, putting other important programs at risk.
If you think you’ve been targeted by a fraudulent housing assistance program, there are steps you can take:
Verify the provider: Confirm the agency is enrolled and in good standing on the DHS website.
Collect your records: Request detailed service logs and signatures, and remember to keep all correspondence.
Report suspected fraud: Call the DHS Program Integrity hotline or submit an online tip using the Program Integrity Oversight hotline form. You can also file a complaint with the Minnesota Attorney General’s Office or your county’s human services fraud unit.
If you need assistance, seek help from verified programs. Housing navigators in your county and Continuum of Care agencies can connect you to legitimate support. The U.S. Department of Housing and Urban Development’s Housing Choice Voucher and Section 811 programs also offer rental assistance for people with disabilities.
With new investigations launched and stricter screening on the horizon, state officials say they’re working hard to protect both vulnerable residents and public funds. But for people like Smith and Lien, their wish is simple: “I think they need to be held accountable."
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
