Criminal past of medical fraudster accused of stealing $270M from Medi-Cal

An Orange County man accused of stealing $270 million in a Medi-Cal scheme was arrested in 2012 over hospital kickbacks worth up to $20,000 apiece, the California Post can reveal.

Paul Richard Randall was charged with conspiracy to commit mail fraud, court papers uncovered by The Post show.

The elaborate scheme unfolded when Randall was a marketer at an Orange County hospital.

Randall set up Summit Medical Group and recruited chiropractors and physicians to refer worker comp patients for spinal surgeries.

In return, he would pay them up to 20,000 per surgery, the papers show.

To pay for the kickbacks and line his own pockets, the fraudster would submit inflated invoices to the hospital for surgeries and equipment at the hospital’s direction.

The hospital then submitted the invoices to worker comp’s insurance carriers for payment, the papers allege.

The hospital would reimburse Summit and Randall would pay the kickback from his profit. He paid out at least $30,000 to one chiropractor, according to the papers.

One invoice for spinal surgery hardware listed the cost as $42,467, when it actually cost $13,641, the documents say. Randall was sentenced to 15 months in custody.

The con artist was also named in a 2020 indictment accusing him of evading 2015–2017 income tax payments. The papers allege Randall did not pay taxes and cashed over $100,000 worth of checks.

The plea agreement said Randall “was operating a prescription referral business called Pharma Pro Solutions LLC. Pharma Pro had a half-dozen or so “marketers” who staffed booths to solicit students and employees with health insurance to seek prescriptions for expensive and medically unnecessary compounded drugs.”

It went on to say the “defendant agreed with health care providers to refer patients to providers in exchange for the providers’ writing prescriptions for such medications.”

On April 24, 2023, Randall was sentenced to 23 months in custody.