State Rep. Deqa Dhalac, the former assistant executive director of Gateway Community Services, has become ensnared in a congressional inquiry into Medicaid fraud spanning Minnesota and Maine.
House Oversight Chairman james Comer (R-Ky.) is demanding briefings from the Justice Department and Treasury over Minnesota’s ballooning social-services fraud scandal.
Comer’s sweeping requests expand and escalate an already explosive investigation targeting industrial-scale Medicaid fraud carried out primarily by members of the Somali diaspora in Minnesota. But in the fine print, he flags a Maine Medicaid contractor already under intense scrutiny: Gateway Community Services and its Somali-American founder, Abdullahi Ali.
In a Dec. 22 letter to Treasury Secretary Scott Bessent, Comer requested Suspicious Activity Reports, or SARs, and related material tied to suspected fraud-linked money movement – including transactions routed through Minnesota and into foreign jurisdictions.
Comer’s request also sought SARs tied to Gateway and its similarly named 501(c)(3) arm, specifically naming Ali and state Rep. Deqa Dhalac (D-South Portland). Dhalac listed herself as the assistant executive director of Gateway Community services’ for-profit arm from 2022 to 2024, and she is listed in the 501(c)(3)’s Form 990 tax filings as a director.
Congressional Inquiry Focuses on Maine Medicaid Contractor’s Alleged Funding of Somali Militia
A congressional investigation is scrutinizing gateway Community Services, a Maine-based Medicaid contractor, and its CEO, Abdullahi Ali, over allegations that Ali funded a paramilitary group in Somalia while simultaneously receiving millions in taxpayer dollars through MaineCare, the state’s Medicaid program.
Representative james Comer (R-KY), chair of the House Oversight Committee, has requested sensitive anti-money laundering (AML) reports from the U.S.Treasury Department related to Ali, Gateway, and another company employee, Mohamud Dhalac. The request seeks to determine if financial transactions support claims made by Ali in Somali-language interviews, were he stated he funded troops and munitions for a militia he intended to deploy against political opposition in the Jubbaland region of Somalia.[https://www.themainewire.com/2025/03/somali-american-received-millions-in-u-s-taxpayer-dollars-mainecare-funding-while-claiming-to-bankroll-jubaland-militia/]
According to the request, Treasury’s Suspicious Activity Reports (SARs) could reveal any unusual financial activity by Ali, Dhalac, or other Gateway employees, including large deposits, withdrawals, or wire transfers, particularly those potentially linked to Somalia.
MaineCare Funding and Audit Findings
From 2019 to 2024, Gateway billed MaineCare approximately $5 million annually. [https://www.themainewire.com/2025/03/somali-american-received-millions-in-u-s-taxpayer-dollars-mainecare-funding-while-claiming-to-bankroll-jubaland-militia/] During this period, the Maine Department of Health and Human Services (DHHS) issued two audit findings alleging overbilling by Gateway. The agency is currently contesting one of those findings through an administrative process. [https://www.themainewire.com/2025/03/somali-american-received-millions-in-u-s-taxpayer-dollars-mainecare-funding-while-claiming-to-bankroll-jubaland-militia/]
DHHS has stated that recoupment of overpayments is underway, and suspected fraud concerns have been referred to the maine Attorney General’s office. [https://www.themainewire.com/2025/03/somali-american-received-millions-in-u-s-taxpayer-dollars-mainecare-funding-while-claiming-to-bankroll-jubaland-militia/]
Political Context and Grant Award
The congressional inquiry adds another layer to a pre-existing controversy in Maine. Despite the allegations of overbilling and the reports of Ali’s alleged funding of a Somali militia, Maine attorney General Aaron Frey, a close ally of Governor janet Mills, declined to investigate Gateway.[https://www.themainewire.com/2025/03/somali-american-received-millions-in-u-s-taxpayer-dollars-mainecare-funding-while-claiming-to-bankroll-jubaland-militia/]
Further, in June, Frey’s “Recovery Council” awarded Gateway a $400,000 grant funded by opioid settlement money, a decision made after reports surfaced regarding Ali’s alleged support for the Jubbaland militia. [https://www.themainewire.com/2025/03/somali-american-received-millions-in-u-s-taxpayer-dollars-mainecare-funding-while-claiming-to-bankroll-jubaland-militia/]
Comer’s letter does not accuse Gateway or Ali of any crime, but the investigation is expected to bring increased scrutiny to MaineCare, the state’s largest and fastest-growing program. [https://www.themainewire.com/2025/03/somali-american-received-millions-in-u-s-taxpayer-dollars-mainecare-funding-while-claiming-to-bankroll-jubaland-militia/]