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

A California fraudster who allegedly turned a taxpayer-funded health program into his personal cash machine is going away for three decades after pumping nearly $270 million in bogus claims into Medi-Cal.

Paul Richard Randall, 67, of Orange, was sentenced to 30 years in federal prison — the statutory maximum — and ordered to pay more than $178-million in restitution after pleading guilty to one count of wire fraud in April 2026.

“This defendant took advantage of California’s weak systems allowing him to submit $270 million in fraudulent claims to Medi-Cal in less than a year,” First Assistant US Attorney Bill Essayli said.

The 11-month scheme allegedly ran through Monte Vista Pharmacy, where tens of millions of dollars in claims were submitted every month for high-reimbursement, non-contracted generic drugs.

The alleged price gouging was staggering.

One prescription for generic meloxicam 5 mg was billed at approximately $13,424, even though the drug typically costs between $5 and $25 for a 30-day supply in larger dosages.

Pain creams and Folite tablets, an over-the-counter vitamin, were also part of the alleged fraud.

Court documents say the medications were medically unnecessary, frequently never dispensed to patients and obtained through illegal kickbacks.

The operation allegedly depended on a network of payoffs.

Patient marketers received kickbacks in exchange for Medi-Cal beneficiary information, while nurse practitioner Patricia Anderson, 59, of West Hills, was paid to sign pre-filled prescriptions.

Prosecutors said Anderson never met the patients, reviewed their medical records or determined whether the drugs were medically necessary before signing the prescriptions.

Pharmacist and pharmacy owner Kyrollos Mekail, 38, of Moreno Valley, was also involved, according to the case.

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

Randall wasn’t even free of federal scrutiny when he allegedly carried out the scheme.

He committed the fraud while already on release in another federal criminal tax case.

The government has since seized approximately $126.5 million in assets accumulated from the scheme, including $111 million in bank funds and securities, nine luxury vehicles worth approximately $1 million, nine luxury properties worth approximately $13.5 million and more than $1 million in sports memorabilia.

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

The punishment is among the highest health care fraud sentences in the history of the Central District of California.

And Essayli says California needs to stop leaving the vault door open and then acting surprised when criminals walk away with the money.

“While we are pleased with today’s sentence, California must do better to prevent criminals from looting taxpayer coffers before it happens, not scramble to recoup money after it’s been stolen.”

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