Paul Randall, 66, of Orange, California, has pleaded guilty to orchestrating a massive Medicaid fraud scheme that submitted nearly $270 million in fraudulent claims to Medi-Cal, California's state Medicaid program. The Department of Justice announced Randall's guilty plea to one count of wire fraud, revealing that the scheme illegally diverted taxpayer funds for personal enrichment. This case represents one of the largest healthcare fraud prosecutions in California's history.
Randall, along with co-conspirators pharmacist Kyrollos Mekail and nurse practitioner Patricia Anderson, exploited a temporary suspension of Medi-Cal's prior authorization requirement at the beginning of 2022. Operating through Monte Vista Pharmacy, owned by Mekail, they billed Medi-Cal for expensive prescription drugs that were medically unnecessary, often not provided, and contained cheap generic ingredients. The scheme generated tens of millions of dollars monthly by exploiting loopholes in reimbursement caps.
According to court documents, Randall admitted to causing at least $269,120,829 in false and fraudulent claims between May 2022 and April 2023, from which Medi-Cal paid approximately $178,746,556. The illicit proceeds were laundered and used to acquire extravagant assets. As reported by CBS News, these purchases included:
"Seven properties, a Mercedes G-Wagon, sneakers worn by Kobe Bryant and a Mickey Mantle rookie card worth $1.5 million."
Randall, who has been in federal custody since June 2025, faces a maximum penalty of 30 years in prison at his sentencing scheduled for August 3. Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division stated, "The defendant was a repeat fraudster who caused Medi-Cal... to be billed nearly $270 million for expensive and medically unnecessary medications." Randall also agreed to forfeit over $17 million in bank account balances, vehicles, real estate, and sports memorabilia.
This case underscores ongoing efforts by federal agencies, including the FBI and HHS Office of Inspector General, to combat healthcare fraud. Law enforcement officials emphasize the challenge of recovering stolen funds, with much of it often moved overseas. First Assistant U.S. Attorney Bill Essayli highlighted that Randall was on release for another federal fraud charge when he initiated this scheme, questioning systemic breakdowns.
