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Home»NEWS COMMENTARY»That Medicaid Fraud Scandal In Minnesota Just Got A Lot Worse

That Medicaid Fraud Scandal In Minnesota Just Got A Lot Worse

By Jonathan DavisDecember 18, 2025 NEWS COMMENTARY
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A Minnesota fraudster indicted for defrauding the state out of millions in the largest COVID-era scam in the nation is reportedly still billing the state for millions in fraudulent services. This alarming and ongoing outrageous taxpayer rip-off in Tim Walz’s state has been brought to light by Republican lawmaker Kristin Robbins, who chairs the House Fraud Prevention and State Agency Oversight Policy Committee.

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 complicate matters further, Mohamed had already contributed the maximum allowable amount of $2,500 to the state’s Democratic attorney general, Keith Ellison. Additionally, his brother was convicted in connection with the $1 billion Feeding Our Future fraud scandal.


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The revelation only raises more questions about the lack of accountability shown by Walz and his administration regarding Minnesota’s generous social welfare programs. State officials continue to acknowledge that they seem indifferent to the fraud occurring under their watch.

“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.

In the past decade, the number of individuals offering “adult day care” services has surged by 43 percent, while the demand for such care has only risen by 7 percent. Despite this significant growth in providers, Shireen Gandhi, the temporary commissioner of the Minnesota Department of Human Services, recently announced that “effective February 1, we will enact a two-year pause on adult day care licenses.”

In simple terms, Minnesota is falling short of its fundamental responsibilities, and state taxpayers are picking up the tab.

This situation highlights yet another argument for privatizing Medicaid and health insurance in general. Would a for-profit company put up with such severe mistakes? Would they tolerate this level of waste, fraud, and abuse? Certainly not. If the government weren’t subsidizing the whole industry, prices would be lower, and private insurers would be highly motivated to root out fraud. In contrast, Democrats seem to lack those incentives. Their focus often shifts to increasing spending with good intentions, leaving the repercussions to unfold on their own.

There was a time when even Democrats prioritized basic oversight. Unfortunately, it seems that’s no longer the case.

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