Minnesota State Senator Omar Fateh is facing ethics concerns over legislation he introduced that could have benefited a company owned by his wife, Kaltum Mohamed. The controversy comes as Fateh, who is campaigning as a socialist for Minneapolis mayor, pushes a platform focused on housing and social services.
Fateh introduced Senate File 2741 in March, a bill that aimed to expedite access to Housing Stabilization Services (HSS), a taxpayer-funded Medicaid program that helps elderly and disabled individuals secure stable housing. The legislation sought to transfer HSS approval authority from state officials to local county case managers, a change that would streamline access to the program.
At the time of the bill’s introduction, Mohamed was still listed as the owner of Community Development Services LLC, an HSS-approved business that recruits clients for housing services. Records from the Department of Human Services (DHS) confirm she transferred ownership only after the bill was submitted.
Critics argue the overlap presents a clear conflict of interest. Legal experts, including Professor David Schultz, called it a textbook example of ethical violations. “This is a situation where almost anybody schooled in Government Ethics 101 would know you can’t introduce legislation that benefits yourself,” Schultz said.
Though Mohamed’s business did not directly receive Medicaid funds, the appearance of self-dealing has sparked bipartisan concern. Fateh’s campaign maintains that the bill was constituent-driven and aimed at improving services while reducing fraud. “That means more people housed, and county staff empowered to catch the fraudsters and bad actors earlier, which DHS has proven unable to do,” the campaign said.
The bill followed revelations of widespread fraud within the HSS program, including fake billings and unauthorized sign-ups. While Fateh argued the legislation would reduce such abuse, the timing and personal ties have raised questions about transparency and accountability.
Fateh’s mayoral campaign may now face increased scrutiny as voters weigh the implications of his legislative actions.
