Minnesota’s sprawling welfare-industrial complex is once again under the microscope after a stunning investigation by NewsNation revealed that so-called “assisted living” facilities funded with millions in taxpayer dollars are, in reality, nothing more than ordinary single-family homes.
According to reporting from Rich McHugh of NewsNation, Minnesota continues to shovel millions of Medicaid dollars to properties owned by a man already indicted in the state’s massive Feeding Our Future fraud scandal, despite overwhelming red flags and a growing list of exploited public programs.
The properties are owned by Gandi Mohamed, also known as Gandi Abdi Kediye, who was indicted in February 2024 on money laundering charges tied to the Feeding Our Future case. Prosecutors allege Mohamed helped launder approximately $1 million in fraudulent funds.
According to the DOJ:
Gandi Yusuf Mohamed, 43, Ikram Mohamed’s brother, was the owner of GAK Properties LLC and GIF Properties LLC, companies used to receive and launder the proceeds of the fraud scheme. Gandi Mohamed also submitted fraudulent meal counts and claims on behalf of his family’s companies. As alleged, between March 2021 and July 2022, Gandi Mohamed fraudulently received and laundered more than $1.1 million in Federal Child Nutrition Program funds. Gandi Mohamed is charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering.
Yet while awaiting trial, Mohamed’s limited liability company continues to benefit handsomely from the state.
His wife reportedly operates multiple “assisted living” facilities out of residential homes in the Minneapolis area.
Those facilities alone received more than $2.3 million in state payments last year.
Even more staggering: since 2016, Mohamed has been paid $49 million by the state’s Minnesota Department of Human Services, according to the Minnesota Reformer.
NewsNation visited three of the locations tied to Mohamed’s LLC. Each one appeared to be a standard single-family residence—not a medical or assisted living facility.
Staff at the homes claimed ignorance of Mohamed’s indictment and declined to explain how such operations qualified for massive Medicaid reimbursements.
Hellbound and Down 