I've had issues with Mind Blades in that it seems to bounce from enemy onto my own companions? Been scared to use it as a result unless I can alpha strike with it and know there's a larger number of enemies around.
if your companions are mind controlled, confused ect, yes, it bounces into them. And if the tarjet dies before the blade hits, the spell is lost and the focus wasted. (just take care when you lost control of a party member)