Dr. Mehmet Oz outlined new federal actions in response to a major Medicaid fraud scheme in Minnesota, describing how the operation unfolded, why it continued for years, and what steps federal authorities are now taking to address it.
Oz said the scheme involved more than a billion dollars in losses tied to a Somali fraud network operating within programs managed by the Minnesota state government.
In his statement, Oz said the scale of the misconduct reflected systemic failures at the state level.
“It’s true, a Somali fraud ring in Minnesota stole over a billion dollars from Medicaid. How did this happen? Well, Medicaid programs are run by the states, which in Minnesota means the Tim Walz administration,” he said.
According to Oz, warnings went unaddressed because of political concerns.
“Governor, Walz and the state’s other Democrats rely on Somali votes to get elected, so they decided to look the other way, because they were afraid of quote, unquote political backlash. Don’t take my word for it. That’s what a Somali American fraud investigator told New York Times.”
Oz said the lack of oversight allowed the scheme to expand rapidly.
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“When these scammers realized that nobody was guarding the cash register, they went gangbusters,” he said.
He pointed to a housing stabilization program as an example.
“One program designed to provide housing stabilization assistance to patients, ballooned to $104 million when four years ago, it was projected to cost only 2.6 million,” Oz said.
He added that “some of these taxpayer funds may have even ended up in the hands of a Somalian terrorist group.”
According to Oz, the Centers for Medicare and Medicaid Services began reviewing the program after concerns were raised.
“When CMS became aware of the housing program situation, Minnesota insisted it could clean up its own mess. A few months ago, it admitted it could not so we stepped in to shut down the fraud infested housing initiative,” he said.
Oz said the issues extend beyond a single program.
“Today, we’re taking action on more than a dozen other programs, which I’ve outlined in the post below,” he said.
He also stated that the federal government has given Minnesota a deadline to resolve remaining problems.
“Our message to Wallace is clear, either fix this in 60 days or start looking under your cash for spare change, because we are done footing the bill for your incompetence.”
Oz said the administration’s priority is safeguarding public funds and ensuring that vulnerable individuals receive legitimate services.
“This administration will never stop fighting to protect the vulnerable Americans who rely on these programs and the taxpayers who fund them. We’re going to crush waste, fraud and abuse,” he said.
WATCH:
🚨 HOLY CRAP! CMS Administrator Mehmet Oz just exposed the Tim Walz administration on huge Somali fraud, will PULL federal funding if he doesn’t fix it
“Either fix this in 60 days or start looking under your couch for spare change, because we’re done footing the bill for your… pic.twitter.com/BoB7RkG0FK
— Eric Daugherty (@EricLDaugh) December 5, 2025
