Dr. Oz Orders Full-Scale Federal Audit of Minnesota Medicaid Under Tim Walz — Fraud Will Be Clawed Back and Withheld From Future Funding

Dr. Mehmet Oz, acting Administrator of the Centers for Medicare & Medicaid Services (CMS), has formally notified Tim Walz that every Medicaid billing submission in Minnesota will be audited—and that fraudulent claims will be clawed back and withheld from future federal funding.

In early December 2025, CMS Administrator Dr. Mehmet Oz sent a formal letter and issued a public ultimatum to Minnesota Governor Tim Walz regarding the “systemic fraud” in the state’s Medicaid programs, potentially exceeding $1 billion.

Dr. Oz wrote at the time:

“You’ve probably heard the news by now: Minnesota fraudsters stole over $1 billion from Medicaid. And you deserve an explanation.

Our staff at CMS told me they’ve never seen anything like this in Medicaid — and everyone from Gov. Tim Walz on down needs to be investigated, because they’ve been asleep at the wheel. Based on what we know now, this is a clear dereliction of duty.

First, the facts:

In recent years, Minnesota Medicaid launched several new programs, including Housing Stabilization Services, which helped disabled homeless individuals, and Early Intensive Developmental and Behavioral Intervention, which reimbursed therapy costs for families with autistic children.

Some bad actors in Minnesota’s Somali community decided to game the system. And when they got away with it, they decided to go bigger.

The housing program was supposed to cost $2.6 million dollars annually. Last year, it paid out over $100 million. The autism program ballooned from $3 million in 2018 to nearly $400 million in 2023.

These scammers used stolen taxpayer money to buy flashy cars, purchase overseas real estate, and offer kickbacks to parents who enrolled their kids at fake autism treatment centers. Some of it may have even made its way to the Somalian terrorist group Al-Shebab.

So why didn’t Walz stop them?

That’s simple: because he went all-in on identity politics.

Somalis are a huge voting bloc, and the state’s leaders were afraid that “forcefully tackling this issue might cause political backlash.” That’s not me saying that. It’s a Somali-American fraud investigator who talked to The New York Times.

Somali scammers get rich off the programs Gov. Walz was supposed to be managing. Minnesota politicians get elected with Somali votes and keep the money flowing. This isn’t just fraud: it’s political patronage at public expense.

When Minnesota told CMS about the problem last year, they assured us they’d handle it. By summer, it was obvious they couldn’t — or wouldn’t. So, we stepped in and shut down the worst program: housing. We also froze provider enrollment in a few of the most abused programs.

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Tim Walz Drops Out of Minnesota Governor Race. Good Riddance.

With dark clouds gathering over his previously sunny reelection bid, Tim Walz has had enough. Minnesota’s Democratic governor announced Monday he would abandon his pursuit of a third term following widespread negative publicity due to his mishandling of welfare fraud allegations.

Walz has not been accused of personal wrongdoing, but the buck stops here, as they say. Walz was the man in charge while fraudsters stole millions, or perhaps billions, of taxpayer dollars by setting up fake charities, ransacking the medical system, and operating dubious child care services. The sheer amount of plunder has attracted national media attention in recent weeks, with even The New York Times throwing Walz under the bus.

The governor’s response has not reassured his critics that he is laser focused on restoring credibility to these programs and mercilessly prosecuting thieves. It is fine to insist, as Walz has, that the entire Somali diaspora not be smeared for the criminal behavior of some community members, but the governor has made a habit of trying to redirect blame to other groups, such as white men. This is unpersuasive, since the accusations against the Somalis are about proportionality, not absolute levels of crime. Moreover, saying that we must be color-blind with respect to the ethnicities of the fraudsters while also calling for more white men to be held accountable is totally incoherent.

Unfortunately, this incoherence is broadly representative of the Walz persona. This is a man who was elevated to national prominence by Vice President Kamala Harris when she picked him to be her 2025 running mate. In Walz’s own clumsily-worded telling, she picked him because he could “code talk to white guys” like himself. He saw his job as reassuring his own identity group that they could vote for a black woman for president. It’s a reductive and extremely flawed notion of what makes for a relatable presidential ticket; Harris underperformed with men—particularly young men—of all racial backgrounds, not specifically white guys. Walz likes football and fixing trucks, so vote Harris/Walz 2024! This is identity politics at its most vacuous.

But it’s not just that Walz’s vibes are off. His governance in the state of Minnesota has been disastrous, even apart from the fraud scandal. Indeed, Walz has achieved a record as hostile to human liberty as virtually any other currently seated governor. He was, first and foremost, a COVID-19 tyrant who zealously enforced social distancing and mask requirements, including by setting up a coronavirus snitch hotline: Citizens were encouraged to report their neighbors to the government for failing to abide by COVID-19 rules. He also spent coronavirus relief money on pet projects and political kickbacks that were obviously outside the scope of what the money ought to have been used for: state workers’ parking costs, teaching women and minority owned businesses how to apply for state contracts, and the Minneapolis zoo.

For supporters of individual liberty, Walz’s various pronouncements on policy issues were like nails on a chalkboard. He said that misinformation was not protected by the First Amendment. (It is.) He said socialism was just “neighborliness.” (He should take that attitude to New York City, where it belongs, unfortunately.) He said it was “not a mistake” to send sick COVID-19 patients back to nursing homes. (Even former New York Gov. Andrew Cuomo has dropped that point.)

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BEYOND PARODY: Craigslist Ad From a Daycare Center in Minneapolis Seeks to Hire 20 Child Actors

This is just too funny to be real. A post on Craigslist in the city of Minneapolis is supposedly from a daycare center that is looking to hire up to twenty child actors.

Since anyone can post something on the marketplace/message board website, it could be from anyone, but given the intellect of the Minneapolis fraudsters we have seen in recent weeks, it may very well be real.

In their defense, they are at least offering good money for the actors they seek to hire.

PJ Media reported:

Is a Minneapolis ‘Daycare’ Trying to Hire Child Actors on Craigslist?

Either a Minneapolis fake daycare is actually trying to hire child actors to restart taxpayer funding or someone is playing a truly extraordinary practical joke on Craigslist users.

A listing posted several days ago on Craigslist from “Help Us Daycare” actually advertises a desire to hire “child actors for 3 day contract (Ventura Village).”. The listing claims the daycare lost state funding due to “white supremacy” and asserts that it needs to hire 20 child actors for a few days to show up to the fake daycare because the “ENTIRE client base has already found new daycare services.” So when the state investigators arrive, the listing explains, kids need to be on site. The listing seems too insane to be sincere. On the other hand, when you consider the craziness uncovered in the Minnesota Somali daycare fraud investigation, perhaps this entry warrants a little government scrutiny…

The Craigslist listing rambles, “Due to this insane poor decision clear in white supremacy, we had to close our doors immediately. We must prove we are a function day care to get the funding back. The issue is, the ENTIRE client base has already found new daycare services so we need to find new clients base quickly.” I would feel more confidence in the alleged functionality of the daycare if the person composing this could actually write English.

The crazy listing continues, “To help hurry this state vetting processes, we are looking to hire 20 child actors for 3 days, while state is present on site. We pay up to $1500 actor, per day. If you are interest, please send your child’s age and a note of what makes your child a special actor. Submit phone number as well, as we will be doing quick phone interviews as part of hire process.” The tone is certainly rather desperate.

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Mary Moriarty threatens prosecutions over ‘hateful’ messages to Somali community

Amid national attention on fraud in Minnesota, Hennepin County Attorney Mary Moriarty has warned that people who send “hateful” messages to the Somali community could face prosecution.

Meanwhile, it was recently revealed that a Somali national who pleaded guilty in two separate sexual assault cases avoided prison under a plea deal negotiated by Moriarty’s office.

Last year, Abdimahat Mohamed received a three-year prison sentence that was stayed and served no time in prison after pleading guilty in two separate sexual assault cases — one involving the rape of a 15-year-old girl in 2017 and another involving an adult woman in 2024.

In both cases, the most serious criminal sexual conduct charges were dropped. Moriarty’s office defended the plea deal after national attention followed, saying it had lost key witnesses and that the case was “substantially weakened.”

According to a later FBI affidavit tied to federal kidnapping charges, Moriarty’s office also agreed not to charge Mohamed for a third sexual assault from 2018 as part of the plea agreement.

Now, Moriarty has issued a public statement warning that her office is receiving “a large number of reports” of members of the Somali community being sent “hateful, threatening, and disturbing messages.”

The statement blamed “far-right propagandists” for “demonizing an entire group of people” and urged the public to report such messages to law enforcement so cases could be reviewed for prosecution.

Moriarty’s statement included contact information for advocacy organizations and pledged the office would “do everything in our power to keep each other safe.”

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WOW: Trump Shares Video Questioning if Tim Walz Ordered the Assassination of Minnesota Lawmaker Melissa Hortman to Cover Up Somali Fraud Scheme

President Donald Trump has shared a video questioning whether Minnesota Governor Tim Walz was involved in ordering the assassination of State Representative Melissa Hortman to cover up the Somali fraud scheme.

The post, which Trump shared on his Truth Social platform, suggests Hortman’s murder may have been tied to her efforts to expose a multi-billion-dollar money laundering operation funneling funds to illegal immigrants, particularly Somalis, through corrupt government rackets in childcare and healthcare.

Last summer, Hortman and her husband, Mark Hortman, were gunned down in their home by a man posing as a police officer. Democrat State Sen. John Hoffman and his wife, Yvette Hoffman, were also targeted in a separate incident at their residence on the same night. Miraculously, the Hoffmans survived.

Vance Boelter, a 57-year-old man who was later arrested for the shootings and indicted on six federal charges, including stalking and murder.

According to a press release from the U.S. Attorney’s Office in the District of Minnesota, Boelter conducted “extensive research and planning” before embarking on a “murderous rampage targeting Minnesota’s elected officials and their families.”

It was soon revealed that Boelter was appointed to the Governor’s Workforce Development Board by Walz, and in his confession, he claimed he was ordered to do the assassinations by the governor himself.

The post Trump shared, originally from X user @LightOnLiberty, asks, “Was Minnesota State Rep Melissa Hortman murdered because she voted against and was exposing a multi-billion dollar money laundering fraud going to illegal immigrants in Minnesota?!”

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Tampon Tim Walz DROPS OUT of Minnesota Governor’s Race Following Massive Somali Fraud Scandal

The ongiong Somali fraud scandal has brought an end to Givenror Tim Walz’s political carrer in Minnesota.

He has announced he will not seek a third term this morning.

Here is Walz’s full statement via KTTC:

In September, I announced that I would run for a historic third term as Minnesota’s Governor. And I have every confidence that, if I gave it my all, I would succeed in that effort.

But as I reflected on this moment with my family and my team over the holidays, I came to the conclusion that I can’t give a political campaign my all. Every minute I spend defending my own political interests would be a minute I can’t spend defending the people of Minnesota against the criminals who prey on our generosity and the cynics who prey on our differences.

So I’ve decided to step out of the race and let others worry about the election while I focus on the work.

I know this news may come as a surprise. But I’m passing on the race with zero sadness and zero regret. After all, I didn’t run for this job so I could have this job. I ran for this job so I could do this job. Minnesota faces an enormous challenge this year. And I refuse to spend even one minute of 2026 doing anything other than rising to meet the moment. Minnesota has to come first – always.

Axios reports that Senator Amy Klobuchar and Attorney General Keith Ellison could now jump in the race.

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Son of Minnesota Attorney General Keith Ellison Accused Of Collecting Six-Figure City Salary Despite Harvard Fellowship In Massachusetts

Minnesota city council member and son of radical AG Keith Ellison is accused of “accepting a full time accepting a full-time fellowship at Harvard University while continuing to collect his six-figure taxpayer salary.”

This was recently reported by Campus Reform.

Minnesota, sadly, seems to be a focus of corruption right now.

Jeremiah “Ellison, the son of Minnesota Attorney General Keith Ellison, told The Minnesota Star Tribune that he is splitting time between Minneapolis and Cambridge, Massachusetts, during the final months of his term.”

“The fellowship requires him to be in Massachusetts, meaning Ellison has already stepped back from the Business, Housing, and Zoning Committee and the Public Health and Safety Committee.”

Minneapolis city council members like Ellison are given a salary of close to $110,000.

Ellison was first elected in 2017, representing North Minneapolis.

“Council Member LaTrisha Vetaw, the only other member representing the North Side, blasted the move, calling it unacceptable that her constituents will now have “zero” representation in the city’s most consequential committees.”

Ellison argues he can attend virtually the city’s year-end budget vote.

Minneapolis rules do not allow council members to vote remotely, raising questions about how effective his virtual participation will be.”

“Council President Elliott Payne admitted that the arrangement was largely made on the advice of the city clerk and said the full council will revisit the issue in the coming weeks.”

Some other members are already calling for Ellison’s seat to be filled.

A council member named Jamal Osman is calling for a replacement during the transition.

“Concerns about the arrangement have been dismissed by Ellison, who told KSTP-TV that he “will be present for most full city council meetings,” and that nothing remarkable is actually happening.”

Fortunately for his city, Ellison will not be running for reelection.

His father is previously known for his pro Antifa and support of CAIR, the Muslim Brotherhood-affiliated group.

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500 Illegal Immigrants Arrested In Minnesota, 1,000 Immigration-Fraud Cases Investigated: DHS Official

As additional investigators surge to fraud-plagued Minnesota, federal agents have already arrested 500 illegal immigrants and probed 1,000 immigration-fraud cases during the past two months, a Homeland Security official estimated.

Tricia McLaughlin, Homeland Security assistant secretary, gave those updated figures Dec. 30 during an interview with the Charlie Kirk Show.

Fraud was substantiated in about half of the immigration-fraud investigations, she said, and many of the arrested illegal immigrants were from Somalia.

Somalis dominate the list of nearly 100 people federally charged in various schemes to defraud the government, authorities have said.

McLaughlin gave additional details in a Dec. 30 Fox News interview. She said “hundreds” of investigators were on the ground in Minnesota.

They were knocking on doors of day care centers, health care centers, and “other organizations that take taxpayer dollars,” she said.

“These suspected perpetrators are really trying to cover their tracks,” McLaughlin said. She accused the suspects of “trying to whitewash” their operations to appear to be “legitimate” businesses, but they are shams, McLaughlin said.

U.S. Immigration and Customs Enforcement (ICE) has ramped up its operations in Minnesota in recent months, well before a media firestorm erupted over widespread Somali childcare fraud.

YouTuber Nick Shirley gained nearly 132 million views after he posted a Dec. 26 video saying he uncovered over $110 million in alleged fraud in a single day.

The video shows Shirley visiting day care centers that appeared to have no children present, yet these sites had received large payments from a federal childcare program run through the state of Minnesota.

Federal officials have since cut off funding to that program in Minnesota, and are demanding more solid documentation from day care providers nationwide.

ICE has frequently encountered resistance and protesters in Minnesota, which is considered a “sanctuary” state that shields illegal immigrants.

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Trump SBA SUSPENDS Nearly 7,000 Minnesota Borrowers Amid Suspected PPP and EIDL Fraud

The Trump administration’s Small Business Administration announced Thursday that it has suspended 6,900 Minnesota borrowers after uncovering a widespread suspected fraud tied to COVID-19 relief programs.

According to the agency, an internal review of Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) approvals in Minnesota revealed nearly $400 million in potentially fraudulent loans—money that was supposed to keep small businesses afloat and American workers employed during the pandemic.

SBA Administrator Kelly Loeffler said the agency reviewed thousands of pandemic-era loans approved in Minnesota and identified 7,900 PPP and EIDL loans connected to the suspended borrowers.

In a blunt statement posted to X, Loeffler laid out the scope of the action:

“Over the last week, SBA has reviewed thousands of potentially fraudulent pandemic-era PPP and EIDL loans approved in Minnesota.

Today, our agency took action to suspend 6,900 Minnesota borrowers amid suspected fraudulent activity. In total, these borrowers were approved for 7,900 PPP and EIDL loans worth approximately $400M.

These individuals will be banned from all SBA loan programs, including disaster loans, going forward. We will also refer every case, where appropriate, to federal law enforcement for prosecution and repayment.

After years, the American people will finally begin to see the criminals who stole from law-abiding taxpayers held accountable – and this is just the first state.”

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Minnesota To Mandate K–12 Ethnic Studies Instruction In 2026

In the coming weeks, school boards across the Land of 10,000 Lakes state will decide on curricula to meet ethnic studies mandates for the 2026–2027 academic year.

There appear to be limited alternatives to the free instructional materials developed with taxpayer dollars and endorsed by the state teachers’ union.

That curriculum instructs 6th graders to learn the 13 guiding principles of the Black Lives Matter movement; 7th graders on how protesters have breached federal buildings; and higher schoolers to “identify plans of action that people have used to resist, refuse, and create alternatives to oppressive systems,” according to the materials developed by the University of Minnesota’s Center for Race, Indigeneity, Disability, Gender and Sexuality Studies (RIDGS).

“Students will be able to explain how race is socially constructed and how that social construction has been used to oppress people of color, specifically in relation to Jim Crow, segregation, and racial covenants,” reads the description for the 11th and 12th-grade Jim Crow of the North course.

The Center of the American Experiment, a Minnesota-based education policy organization that opposes partisan and race-based curricula, is helping districts find politically neutral alternatives that it says are more like traditional social studies and history electives and less like social justice advocacy guidance.

“The words ethnic studies have been hijacked,” Catrin Wigfall, a policy fellow with the center, told The Epoch Times.

“But boards [of education] have more power in this than they might think.”

Additionally, state laws allow parents to review a curriculum and opt their child out of any instruction they find objectionable, in which case the school is required to provide alternative materials, Wigfall said.

The Minnesota Department of Education defines ethnic studies as an interdisciplinary area of instruction that “analyzes how race and racism have been and continue to be social, cultural, and political forces, and the connection of race to the stratification of other groups.”

The state law requires public schools to incorporate ethnic studies lessons in mandatory social studies courses across all grade levels, in addition to offering a stand-alone ethnic studies elective course for high school juniors and seniors.

In 2023, the Minnesota Department of Education stipulated that the ethnic studies context is expected to be embedded in other subject areas, including math, physical education, and health, as courses are periodically revised.

The Center of the American Experiment argues that those standards habituate angry, inaccurate, and “identity-first” ideological and political perspectives.

By definition, ethnic studies should focus on global histories, cultures, and religions, but the instruction pushed in Minnesota schools forces a polarizing and narrow political worldview, Wigfall said.

“It’s been a bait and switch campaign,” she said.

The center endorses the American Experience curriculum by the Foundation Against Tolerance and Racism, which Johns Hopkins has approved as a model for ethnic studies instruction, as a suitable alternative to the University of Minnesota’s instructional materials.

In addition, the 1776 Unites free curriculum focuses on historical stories that “celebrate black excellence, reject victimhood culture, and showcase African-Americans who have prospered by embracing America’s founding ideals,” according to its website.

Wigfall said her organization will work with school districts to navigate curriculum choices and the timetable for meeting state requirements across various subject areas.

The center isn’t advocating litigation over the mandate, but local education leaders, under federal Title VI provisions, have legal recourse if they are forced to foster a hostile learning environment under state requirements.

“It will be interesting to see what the rollout looks like,” she said. “When you emphasize tribalism, what does that do to knowledge development?”

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