Assisted Living Fraud Concerns

Kandi and her mother been estranged for years and a few months ago she contacted me out of the blue. She had been living in Nevada for almost 30 years and she find out her sister moved her mother back to Minnesota. Kandi went to visit her and found out she moved her into an assisted living building in December of * and basically never went back to check on her since. So I started helping her with everything I could and found out through this process that her rent in this place is $* a month with my mother only bringing in a little over $* a month on social security. So obviously she can't afford this place. So I started making some phone calls and found out my sister lied about my mother's money credentials to get her in there just so she could wipe her hands of her. The only savings my mother had was from the sale of her home which was a little under $*,* and what I mentioned for social security. Now the only savings she has is gone. How can someone lie on an application?