I cannot honestly reply anything to this.....you need to provide details, When was the application made? What is the time frame that this happened? In what order? Was he entered into a nursing home before application? How was the sale of assets conducted..by who...is there a clear audit trail of all money income and expense?
please give us specifics and a simple time line.
My initial guess is that friend gifted assets to others. If that is what happened then that amount is subject to Medicaid penalty.