A shocking investigation has revealed a disturbing reality within Minnesota’s social services network. Millions of taxpayer dollars are flowing to what are ostensibly “assisted living” facilities, yet appear to be nothing more than ordinary homes.
The focus of the inquiry centers on Gandi Mohamed, already facing serious charges in a major fraud case. Despite a February 2024 indictment for money laundering related to the “Feeding Our Future” scandal, his companies continue to receive substantial funding from the state.
Prosecutors allege Mohamed laundered approximately $1 million in fraudulent funds through companies he owned – GAK Properties LLC and GIF Properties LLC. The Department of Justice claims he fraudulently obtained over $1.1 million in Federal Child Nutrition Program funds between March 2021 and July 2022, submitting false meal counts and claims.
While awaiting trial on charges of conspiracy to commit wire fraud and money laundering, Mohamed’s businesses are still thriving thanks to state payments. His wife reportedly manages several of these “assisted living” facilities operating out of typical residential homes in Minneapolis.
These seemingly ordinary homes received over $2.3 million in state funds just last year. The scale of the payments is even more alarming when considering the long term: since 2016, the Minnesota Department of Human Services has directed a staggering $49 million to companies linked to Mohamed.
Investigators with NewsNation visited three properties connected to Mohamed’s LLC. Each location presented as a standard single-family residence, lacking any visible signs of medical care or assisted living services.
Staff members at these homes expressed ignorance regarding Mohamed’s indictment and were unwilling to explain how these residential properties qualified for significant Medicaid reimbursements. The lack of transparency raises serious questions about oversight and accountability.
The situation highlights a potential systemic failure in Minnesota’s welfare system, where millions are being allocated to entities that appear to be exploiting public programs under the guise of providing essential care.
