A man awaiting trial for his alleged role in the largest COVID-related fraud scheme in U.S. history is still reportedly billing Minnesota taxpayers millions of dollars through state-funded programs, according to testimony from a Republican lawmaker who says state leaders have failed to act despite repeated red flags.
The warning came from Minnesota Rep. Kristin Robbins, who chairs the House Fraud Prevention and State Agency Oversight Policy Committee, a small panel created after more than $1 billion in fraud was uncovered across state programs over roughly six years. Robbins said her committee has uncovered extensive evidence that individuals tied to the Feeding Our Future scandal continue to receive taxpayer funds while awaiting trial.
The individual at the center of the latest findings is Gandi Yusuf Mohamed, who later changed his name to Gandi Abdi Kediye. Robbins told lawmakers that Mohamed was indicted in February 2024 on charges tied to $1.1 million in money laundering connected to the Feeding Our Future scheme. Despite that indictment, Robbins said, Mohamed was paid an additional $49 million through other state programs between 2019 and 2024 and remains in operation. His trial is scheduled for 2026.
The Feeding Our Future scandal involved Somali nationals billing the government for millions of meals that were never served. According to the federal Department of Justice, Mohamed’s brother was also involved in the scheme. A 2024 Minnesota Reformer article reported that Mohamed donated the maximum legal campaign contribution to Democratic Attorney General Keith Ellison. That same article quoted a Republican lawmaker urging state authorities to review Mohamed’s contracts — yet his operations continued.
Robbins said her committee, with just one researcher relying on public records, uncovered a sprawling web of questionable assisted-living operations tied to individuals indicted or linked to the scandal. One real estate broker facilitated the purchase of numerous single-family homes, including properties tied to Mohamed, which were converted into assisted-living facilities that billed Medicaid. One company used three homes owned by Mohamed and operated by his wife under a separate business. Robbins said the wife later purchased a fourth home through the same broker, which received a provisional state license in September.
“Incredibly, the Feeding Our Future defendant changed his name just months before he was indicted,” Robbins said, noting that the new name was used to purchase properties that continue to receive state payments — including one tied to the same LLC cited in the money laundering case. “If we haven’t cross-checked people who are indicted to see what other services they’ve received, we have failed,” she said.
The committee also heard testimony about other providers billing large sums for services that recipients say they never received. In one case, payments were halted under one program but continued under another. Another individual used the same realtors while operating unrelated businesses and owning properties that, according to Robbins, generated hundreds of thousands of dollars in Medicaid payments despite minimal capacity.
State officials acknowledged systemic weaknesses. Minnesota Department of Human Services Inspector General James Clark told the committee that Medicaid is “a trust-based system” lacking the staff and technology to closely monitor providers. Officials said adult day care providers have increased 43 percent over a decade, while demand rose just 7 percent. A two-year pause on new adult day care licenses was announced, with officials citing pressure from legislators and providers.
Robbins criticized Democratic leadership, including Gov. Tim Walz, for what she described as years of inaction. She said concerns about fraud were often dismissed, and that Democrats opposed creating stronger oversight mechanisms. While state officials said they were unaware of credible fraud allegations in assisted living, Robbins called that claim “shocking,” saying whistleblowers had repeatedly come forward.
As the state continues expanding Medicaid programs through federal waivers, Robbins warned that unchecked fraud could lead to massive clawbacks from Washington, crippling Minnesota’s budget. “If Democrats won’t stop fraud,” she said, “big-government programs cease to become an option.”
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