California fraudster will get 30 years for $269M Medi-Cal scheme involving bogus claims

A California fraudster who allegedly turned a taxpayer-funded well being program into his private money machine goes away for 3 many years after pumping almost $270 million in bogus claims into Medi-Cal.

Paul Richard Randall, 67, of Orange, was sentenced to 30 years in federal jail — the statutory most — and ordered to pay greater than $178-million in restitution after pleading responsible to 1 depend of wire fraud in April 2026.

“This defendant took benefit of California’s weak programs permitting him to submit $270 million in fraudulent claims to Medi-Cal in lower than a 12 months,” First Assistant US Lawyer Invoice Essayli mentioned.

The 11-month scheme allegedly ran by Monte Vista Pharmacy, the place tens of thousands and thousands of {dollars} in claims had been submitted each month for high-reimbursement, non-contracted generic medication.

The alleged value gouging was staggering.

One prescription for generic meloxicam 5 mg was billed at roughly $13,424, although the drug sometimes prices between $5 and $25 for a 30-day provide in bigger dosages.

Ache lotions and Folite tablets, an over-the-counter vitamin, had been additionally a part of the alleged fraud.

Court docket paperwork say the medicines had been medically pointless, steadily by no means allotted to sufferers and obtained by unlawful kickbacks.

The operation allegedly relied on a community of payoffs.

Affected person entrepreneurs obtained kickbacks in trade for Medi-Cal beneficiary data, whereas nurse practitioner Patricia Anderson, 59, of West Hills, was paid to signal pre-filled prescriptions.

Prosecutors mentioned Anderson by no means met the sufferers, reviewed their medical data or decided whether or not the medication had been medically mandatory earlier than signing the prescriptions.

Pharmacist and pharmacy proprietor Kyrollos Mekail, 38, of Moreno Valley, was additionally concerned, based on the case.

From Might 2022 by April 2023, the operation submitted $269,120,829 in false and fraudulent claims to Medi-Cal, which paid roughly $178,746,556.

Randall wasn’t even freed from federal scrutiny when he allegedly carried out the scheme.

He dedicated the fraud whereas already on launch in one other federal legal tax case.

The federal government has since seized roughly $126.5 million in belongings accrued from the scheme, together with $111 million in financial institution funds and securities, 9 luxurious automobiles value roughly $1 million, 9 luxurious properties value roughly $13.5 million and greater than $1 million in sports activities memorabilia.

Feds seized luxurious automobiles, properties, and Kobe Bryant sneakers, from Randall, who was already out on bail.

The punishment is among the many highest well being care fraud sentences within the historical past of the Central District of California.

And Essayli says California must cease leaving the vault door open after which performing shocked when criminals stroll away with the cash.

“Whereas we’re happy with immediately’s sentence, California should do higher to forestall criminals from looting taxpayer coffers earlier than it occurs, not scramble to recoup cash after it’s been stolen.”

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