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California Man Pleads Guilty in $270 Million Medi-Cal Fraud Scheme

Prosecutors say he exploited a paused pre-approval rule to bill for costly, unnecessary drugs.

Overview

  • Paul Randall, who pleaded guilty Monday to one count of wire fraud, is set for August 3 sentencing and faces up to 30 years in prison.
  • Randall admitted he caused $269,120,829 in false claims from May 2022 to April 2023, and that Medi-Cal paid about $178,746,556 on those bills.
  • Using Monte Vista Pharmacy, the group capitalized on a temporary halt to prior authorization and billed for non-contracted generics priced outside Medi-Cal’s usual caps.
  • Investigators say Randall paid patient marketers for Medi-Cal IDs and paid nurse practitioner Patricia Anderson to sign pre-filled prescriptions without seeing patients, then routed money through a third party to mask kickbacks.
  • The government reports seizing about $126.5 million tied to the scheme, and co-defendants Kyrollos Mekail and Anderson previously entered guilty pleas and await sentencing.