California man gets 30 years for $270 million Medi-Cal fraud scheme

A California man was sentenced to 30 years in federal prison for masterminding a health care fraud scheme in which nearly $270 million in fraudulent claims were submitted to Medi-Cal, the Justice Department announced.

The sentence is one of the highest imposed for health care fraud in the history of the Central District of California.

Paul Richard Randall, 67, of Orange, California, was also ordered to pay $178,746,556.22 in restitution, according to the Justice Department.

Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division said Randall exploited a temporary change in Medi-Cal’s prescription drug reimbursement system to steal taxpayer funds intended for vulnerable residents, adding that the Fraud Division would continue to aggressively prosecute such cases. Acting Deputy Inspector General for Investigations Miranda L. Bennett of the Department of Health and Human Services Office of Inspector General said the scheme reflected “unbridled greed” that corrupted medical decisions through kickbacks and undermined trust in the health care system. First Assistant U.S. Attorney Bill Essayli of the Central District of California said Randall exploited weaknesses in the state’s systems to submit $270 million in fraudulent claims in less than a year.

According to court documents, Randall worked with pharmacist and pharmacy owner Kyrollos Mekail, 38, and nurse practitioner Patricia Anderson, 59, to exploit Medi-Cal’s suspension of a requirement that providers obtain prior authorization for certain medications. The suspension was part of a transition to a new prescription-drug payment system.

Through Monte Vista Pharmacy, Randall and his co-conspirators billed Medi-Cal tens of millions of dollars per month for high-reimbursing, non-contracted generic drugs, including pain creams and Folite tablets, an over-the-counter vitamin. Prosecutors said the medications were medically unnecessary and frequently were not dispensed to patients. One prescription for meloxicam 5 mg was billed at approximately $13,424, although a 30-day supply of the generic drug in larger dosages typically costs between $5 and $25.

Court documents state that Randall paid illegal kickbacks to patient marketers in exchange for Medi-Cal beneficiary information and to Anderson for signing pre-filled prescriptions. Anderson allegedly never met the patients, reviewed their medical records or otherwise determined that the medications were medically necessary.

From May 2022 to April 2023, Randall caused at least $269,120,829 in fraudulent claims to be submitted, of which Medi-Cal paid approximately $178,746,556, prosecutors said. He committed the offense while on release in a separate criminal tax case in the Central District of California. Randall and his co-conspirators also laundered proceeds by transferring money to a third party who paid kickbacks to Anderson, according to court documents.

Randall pleaded guilty in April 2026 to one count of wire fraud. He agreed to forfeit bank balances exceeding $17 million, three vehicles, seven real properties and sports memorabilia. Authorities have seized approximately $126.5 million in assets accumulated by Randall and his co-conspirators through the scheme.

The FBI, HHS-OIG and the California Department of Justice investigated the case.