Los Angeles’ top federal prosecutor said that Californians can only imagine the extent of fraud in their state following the announcement of $270 million Medi-Cal scammer’s arrest this week.
Bill Essayli, First Assistant US Attorney for the Central District of California, didn’t hold back while discussing the case during an appearance on Fox News — saying the the scheme unfolded during a nearly yearlong period when the state took its eye off the ball.
“He took $200 million from the state of California’s Medi-Cal system in an 11-month period because they suspended their fraud-prevention measures that they had on their website,” Essayli said, describing the case of Orange County’s Paul Richard Randall, 66, who admitted to orchestrating a massive billing scam that drained millions from Medi-Cal.
“So this guy took advantage of it. $200 million, one guy, 11 months. So just calculate how much fraud you think there actually is in the state of California.”
Federal prosecutors say Randall, working through a business called Monte Vista Pharmacies, flooded the system with bogus claims for high-cost prescription drugs, many of which patients didn’t need or never received.
Between May 2022 and April 2023, the pharmacy billed more than $269 million and was paid over $178 million for 19 pricey, non-contracted drugs made with low-cost generic ingredients.
Authorities say the scheme took off after Medi-Cal temporarily suspended its prior authorization requirement, a safeguard meant to ensure treatments are medically necessary before reimbursement.
Without it, Randall and his accomplices allegedly billed tens of millions of dollars each month unchecked.
Randall pleaded guilty to one count of wire fraud committed while on release and has been in custody since June 2025. He faces up to 30 years in federal prison when he’s sentenced on August 3.