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Tipsheet

Indicted Minnesota Fraudsters Are Still Cashing in on Taxpayer Funds

AP Photo/Jae C. Hong

An indicted Minnesota fraudster, who defrauded the state out of millions in the nation’s largest COVID-era scam, is somehow continuing to bill the state for millions in fake services, according to Minnesota lawmaker Kristin Robbins, a Republican who chairs the House Fraud Prevention and State Agency Oversight Policy Committee.

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Gandi Yusuf Mohamed, who later changed his name to Gandi Abdi Kediye, “In February 2024...was indicted and charged for $1.1 million in money laundering in Feeding Our Future,” Robbins said during a hearing. “This person was paid an additional $49 million for other state programs between 2019 and 2024. This person will have their trial in 2026.”

To make matters worse, Mohamed had made the maximum allowed campaign contribution of $2,500 to the state's Democratic attorney general, Keith Ellison. The fraudster's brother was also convicted as part of the $1 billion Feeding Our Future fraud scandal. 

The revelation has done nothing but add further questions to the lack of accountability afforded by Tim Walz and his government of Minnesota's generous social welfare programs. And state officials are continuing to admit that they simply don't care about the fraud.

“Medicaid is a trust-based system; we don’t have the technology or staff to look over everyone’s shoulder," Minnesota’s Department of Human Services Inspector General James Clark told the committee. 

Over the last 10 years, the number of people providing “adult day care” has increased by 43 percent, whereas the number of people requiring adult day care has only increased by seven percent. And yet Shireen Gandhi, the Minnesota Department of Human Services’ temporary commissioner, just recently said that "effective February 1, we will enact a two-year pause on adult day care licenses."

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In other words, Minnesota is failing at its most basic duties, and state taxpayers are paying the price. 

This is yet another reason why Medicaid, and health insurance more broadly, should be privatized. Would a for-profit business tolerate such egregious errors? Would they accept this level of waste, fraud, and abuse? Of course not. Prices would drop if the government weren’t subsidizing the entire industry, and private insurers would have strong incentives to prevent fraud. Democrats, on the other hand, lack those incentives. They focus on spending more money with good intentions, letting the consequences fall where they may.

Once upon a time, even Democrats cared about basic oversight. It appears as though that is no longer the case.

Editor’s Note: Help us continue to report the truth about corrupt politicians.

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