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Dr. Oz warns Walz to address alleged Somali Medicaid fraud or lose federal funding: ‘We’ll stop paying’

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Dr. Oz warns Walz to address alleged Somali Medicaid fraud or lose federal funding: ‘We’ll stop paying’

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Centers for Medicare & Medicaid Services (CMS) Administrator Mehmet Oz on Friday warned Minnesota Gov. Tim Walz the state could lose federal Medicaid funding unless it restores “the integrity” of its program.

In a post on X, Dr. Oz claimed more than $1 billion had been stolen through a massive Medicaid fraud scheme carried out by “bad actors” within Minnesota’s Somali community, alleging some of the funds “may have even made its way to the Somalian terrorist group (al-Shabab).”

“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,” Oz said.

COMER TARGETS WALZ IN NEW HOUSE INVESTIGATION, CITING NEARLY $1B IN ALLEGED MINNESOTA FRAUD

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Oz claimed that more than $1 billion was stolen through a massive Medicaid fraud scheme carried out by “bad actors” within Minnesota’s Somali community. (@DrOzCMS via X)

Oz demanded Walz take the following corrective measures within 60 days:

  • Send weekly updates on anti-fraud efforts to CMS
  • Freeze enrollment of high-risk providers for six months
  • Verify all current providers as “legitimate” or remove them
  • Send CMS a corrective action plan to prevent fraud in the future

“If we’re unsatisfied with the state’s plans or cooperation, we’ll stop paying the federal share of these programs,” Oz warned.

The CMS administrator pointed to two Minnesota Medicaid programs launched in recent years, noting dramatic spikes in costs.

The Housing Stabilization Services program, projected at $2.6 million annually, paid out over $100 million in 2024, according to Oz. 

The Early Intensive Developmental and Behavioral Intervention program grew from $3 million in 2018 to nearly $400 million in 2023, he said.

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WALZ ‘DERELICT LEADERSHIP’ TO BLAME IN $1B FRAUD SCANDAL WITH ‘HAUNTING REMINDS OF WATERGATE’: GOP CHALLENGER

The Centers for Medicare & Medicaid Services is demanding Minnesota Gov. Tim Walz address an alleged Medicare fraud scheme carried out by “bad actors” within the state’s Somali community. (Scott Olson/Getty Images)

“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,” Oz said. “Some of it may have even made its way to the Somalian terrorist group al-Shabab. … So why didn’t Walz stop them? That’s simple: because he went all-in on identity politics.”

Minnesota officials previously reported the problem to CMS but failed to address it effectively, according to Oz.

“We stepped in and shut down the worst program: housing. We also froze provider enrollment in a few of the most abused programs,” Oz said. 

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PHOTOS EMERGE OF SOMALI ILLEGAL’S TIES TO TOP MINNESOTA DEMS AFTER ICE ARREST

President Donald Trump recently announced a flurry of actions to investigate alleged fraud schemes in Minnesota. (Alex Brandon/AP Photo)

“The message to Walz is clear: either fix this in 60 days or start looking under your couch for spare change, because we’re done footing the bill for your incompetence.”

President Donald Trump recently announced a flurry of actions to crack down and investigate fraud schemes in Minnesota, which he has assailed as a “hub of money laundering activity,” and cited it as the basis of his decision to terminate deportation protections for hundreds of Somali migrants.

This week, senior Trump administration officials announced fresh investigations, including a new Treasury Department probe into how taxpayer dollars were allegedly diverted to the terrorist organization al-Shabab, according to Secretary Scott Bessent. 

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Walz’s office did not immediately respond to Fox News Digital’s request for comment.

Fox News Digital’s Breanne Deppisch contributed to this report.

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Detroit, MI

Rapper Tee Grizzley plans mixed-use apartment project in Brush Park

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Rapper Tee Grizzley plans mixed-use apartment project in Brush Park


A new mixed-use, mixed-income apartment building proposed for Detroit’s Brush Park is expected to bring 37 units of housing to the neighborhood, according to the project’s lead developer.

The $12 million project at 205 Watson St., known as Wallace Estates, is owned by Detroit rapper Tee Grizzley, whose legal name is Terry Wallace. The 30,000-square-foot development is expected to go before the Detroit Historic District Commission on Wednesday for review. Because the quarter-acre site sits within a historic district, the commission must approve elements such as windows, brickwork, facade materials and other architectural features.

Wallace Estates is planned to be a five-story building with the residential units across the first four floors. The ground floor is expected to include a lobby, a walk-up apartment, commercial space and tuck-under parking. A partial fifth floor will house indoor and outdoor amenities for residents. The building is designed with a masonry facade and large, offset windows, according to the project application.

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“Detroit raised me — I’m a west side kid, and I’m passionate about bringing mixed-income housing to my city,” Wallace said in a statement Thursday. “The 205 Watson project is about building safe, quality housing for everybody; that respects longtime residents and welcomes new neighbors — building opportunity without pushing people out.”

The project was the winning bid of a City of Detroit request for proposals for the site, said Nevan Shokar, principal of Shokar Group and the day-to-day development lead. McIntosh Poris Architects is the designer.

“It’s an infill site that’s bringing high-quality housing, both for affordable and market-rate renters,” Shokar said. “And I think it complements the neighborhood nicely with the brick aesthetic, as well as the brass inlays in the windows.”

Construction could begin this summer and be finished in 18 months, Shokar said, placing completion at late 2027.

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Wallace Estates will join a wave of new residential development in Brush Park, a neighborhood that has seen nearly a decade of revitalization. Last summer, Bedrock celebrated the completion of City Modern, a nearly 10-year effort to transform a once-neglected area of the historic district.

Shokar said the building would primarily include studios and one-bedroom units, with a few two-bedroom apartments. About 20% of the units will be designated affordable at 80% of area median income, with the remainder rented at market rates.

“The highest demand that you have within this neighborhood and across the city as a whole, is to produce more studio and one-bedroom units,” Shokar said. “The two-bedroom units sometimes and larger sometimes have a hard time filling up, leasing up within buildings, and that’s why you typically see units generally smaller in size.”

Shokar said estimated rents for the new building could range from $1,800 per month for a 450-square-foot studio to $2,700 per month for an 800-square-foot two-bedroom unit.

Shokar said the team will pursue incentives including a Neighborhood Enterprise Zone tax abatement and a housing tax increment financing package.

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cwilliams@detroitnews.com



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Milwaukee, WI

Illegal dumping plagues closed Milwaukee Pick ‘n Save

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Illegal dumping plagues closed Milwaukee Pick ‘n Save


Neighbors say since the Milwaukee Pick ‘n Save at 35th and North closed in 2025, the parking lot has been filling up, but not with cars or people. It has been attracting illegal dumpers. 

Trash piling up

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What we know:

There are old mattresses and furniture in the parking lot. There are piles of garbage at the entrance of the old grocery store. Behind the building, there are tires, more mattresses and more trash. 

Illegal dumping at former grocery store near 35th and North, Milwaukee

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The Pick ‘n Save stores closed in July 2025. Since then, the building has sat empty. 

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FOX6 News was contacted by a man who manages senior and family housing in the area. He said in the last couple of months, he has noticed the stile turn into a place for illegal dumping. The man said he was so fed up, he called the office of Milwaukee Alderman Russell Stamper about the problem. The man said the whole site is an eyesore, and something needs to change. 

Illegal dumping at former grocery store near 35th and North, Milwaukee

Change sought

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What they’re saying:

“As the snow melts, it’s full of garbage. People are dumping furniture on it, tires,” said Jeffrey Sessions, who manages nearby property. “If you drive around it, it’s garbage everywhere. It’s unsightly for the neighborhood, and it’s probably going to create rats and mice problems.”

FOX6 News reached out to the Department of Neighborhood Services. Officials said the dumping has not been reported. They said the department’s commercial team will now be made aware of the issue. 

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Illegal dumping at former grocery store near 35th and North, Milwaukee

“It makes the whole neighborhood look like garbage, like nobody’s taking care of anything around here,” Sessions said. “It’s a detriment, it’s unsightly, and it needs to be addressed.”

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Illegal dumpers could face fines

Dig deeper:

If the dumpers are caught on camera, they could face fines. 

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The owner of the property may also be ordered to clean it up.  

Illegal dumping at former grocery store near 35th and North, Milwaukee

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The Source: Information in this post was provided by a person who owns property near the former grocery store, as well as Milwaukee Department of Neighborhood Services.

Crime and Public SafetyMilwaukeeNews



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Minneapolis, MN

Minneapolis City Council votes to extend eviction notice period

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Minneapolis City Council votes to extend eviction notice period



The Minneapolis City Council on Thursday voted to temporarily extend the eviction notice period for renters in an effort to help support residents impacted by Operation Metro Surge.

Under the ordinance, which was approved 7-5, landlords would need to wait 60 days — not the typical 30 — before bringing an eviction notice to a renter. If approved by Minneapolis Mayor Jacob Frey, the 60-day requirement would stay in effect until Aug. 31.

Supporters of the ordinance said Operation Metro Surge left residents out of work and relying on mutual aid networks to pay rent.

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“Preventing eviction is always more cost-effective than trying to re-house someone who has been evicted,” said Council Member Robin Wonsley, who represents Ward 2.

Wonsley, alongside members Elliott Payne, Jamal Osman, Aisha Chughtai, Soren Stevenson, Jason Chavez and Aurin Chowdhury voted in favor of the resolution. Council member Jamison Whiting abstained from voting.

The city estimates Operation Metro Surge led to an additional $15.7 million in monthly need for rental support. Last month, council members approved $1 million in rental assistance for Hennepin County to help families impacted by the surge. 



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