Prosecutors say Paul Randall and co-schemers exploited a policy gap to secure over $178 million in taxpayer funds for medications that were often not needed or never delivered.
An Orange County man pleaded guilty to orchestrating a massive fraud scheme that billed California’s Medicaid program nearly $270 million for medically unnecessary prescription drugs, federal prosecutors announced Tuesday.
Paul Richard Randall, 66, of Orange, pleaded guilty Monday to one count of wire fraud committed while on release, according to the U.S. Attorney’s Office for the Central District of California. He has been in federal custody since June 2025.
“This defendant used a public health program as his personal piggy bank,” said First Assistant U.S. Attorney Bill Essayli. “This guilty plea should send a message that this administration … will not turn a blind eye while criminals fleece taxpayers.”
Acting Attorney General Todd Blanche said the case reflects a broader enforcement push, adding, “All those ripping off the American people are on notice.”
According to court documents, Randall and co-defendants Kyrollos Mekail, 37, of Moreno Valley, and Patricia Anderson, 58, of West Hills, exploited a temporary suspension of prior authorization requirements in Medi-Cal during a transition to a new prescription drug payment system.
Prosecutors said the group used Monte Vista Pharmacy to bill Medi-Cal “tens of millions of dollars per month” for high-reimbursement generic drugs that were “not medically necessary” and often “not provided to patients.”
“He and his co-schemers stole over $178 million through false and fraudulent claims for these medications,” said Assistant Attorney General A. Tysen Duva, adding the funds were used to line “their own pockets with public funds.”
Authorities said the scheme ran from May 2022 through April 2023, during which Monte Vista Pharmacy billed more than $269 million and received over $178 million in payments for 19 drugs containing low-cost ingredients, including over-the-counter vitamins.
Randall also admitted to laundering proceeds by transferring funds to third parties to pay kickbacks and conceal the fraud, according to prosecutors.
“Schemes that bill Medicaid for costly drugs that patients never needed or received threaten the integrity of the program,” said Scott J. Lampert, acting deputy inspector general for investigations at the U.S. Department of Health and Human Services Office of Inspector General.
Randall is scheduled to be sentenced Aug. 3 by U.S. District Judge Mark C. Scarsi and faces up to 30 years in federal prison. Mekail previously pleaded guilty in August 2024 and awaits sentencing, while Anderson has been charged with two counts of health care fraud.
