NewsNation Reporter Finds “Assisted Living” Facility Funded by Americans Is Just a Single-Family Home
Minnesota’s expansive welfare system is facing renewed scrutiny following a NewsNation investigation that uncovered serious concerns about taxpayer-funded “assisted living” facilities that appear to be little more than ordinary single-family homes.
Reporting by NewsNation correspondent Rich McHugh found that Minnesota continues to direct millions in Medicaid funds to properties owned by a man already indicted in the state’s massive Feeding Our Future fraud case—despite repeated warning signs and prior allegations of abuse involving public programs.
The properties are owned by Gandi Mohamed, also known as Gandi Abdi Kediye, who was indicted in February 2024 on federal money laundering charges connected to the Feeding Our Future scandal. Prosecutors allege Mohamed played a role in laundering roughly $1 million in fraudulent funds.
According to the U.S. Department of Justice, Mohamed used companies including GAK Properties LLC and GIF Properties LLC to receive and launder proceeds from the fraud scheme. Federal prosecutors allege that between March 2021 and July 2022, Mohamed fraudulently obtained and laundered more than $1.1 million from the Federal Child Nutrition Program. He faces multiple charges, including wire fraud, conspiracy to commit wire fraud, and money laundering.
Despite the indictment and pending trial, Mohamed’s business entities continue to receive substantial payments from the state. His wife reportedly operates several “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. Records cited by the Minnesota Reformer show that since 2016, Mohamed has received approximately $49 million from the Minnesota Department of Human Services.
NewsNation visited three properties linked to Mohamed’s LLCs and found that all appeared to be standard single-family homes, with no visible signs of operating as medical or assisted living facilities.
Staff members at the locations said they were unaware of Mohamed’s indictment and declined to explain how the homes qualified for extensive Medicaid reimbursements.
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