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Los Angeles, 5 July 2025 – Federal prosecutors have charged Paul Richard Randall, 66, of Orange, California, with health care fraud for allegedly orchestrating a $270 million scheme to defraud Medi-Cal, California’s public health insurance program, through fraudulent prescription drug reimbursements.
💊 Scheme Overview
Between May 2022 and April 2023, Randall and co-conspirators exploited a temporary suspension of prior authorization requirements during Medi-Cal’s system transition. Operating through Monte Vista Pharmacy, they submitted tens of millions in monthly claims for high-reimbursement, non-contracted generic drugs, many of which were:
- Medically unnecessary
- Never dispensed to patients
- Obtained through kickbacks
Drugs included common items like Folite tablets, an over-the-counter vitamin, falsely billed as costly pain treatments.
💰 Financial Impact and Laundering
Medi-Cal paid out $178 million for 19 such drugs. Randall allegedly laundered proceeds by transferring funds to third parties, including payments to Patricia Anderson, 57, of West Hills, to promote and conceal the scheme. Anderson now faces separate health care fraud charges. A third conspirator, Kyrollos Mekail, 37, of Moreno Valley, pleaded guilty in 2024 and awaits sentencing.
⚖️ Legal Proceedings
Randall appeared in U.S. District Court in Los Angeles and was ordered held without bond. His arraignment is scheduled for 17 July. If convicted, he faces up to 10 years in federal prison.
🚨 National Health Care Fraud Takedown
The charges were announced as part of the Justice Department’s 2025 National Health Care Fraud Takedown, which targeted 324 defendants across 50 federal districts, involving over $14.6 billion in intended losses. Authorities seized $245 million in assets and blocked $4 billion in fraudulent claims.
Attorney General Pamela Bondi called the takedown “record-setting,” emphasizing the government’s commitment to protecting vulnerable citizens and taxpayer funds.
For full details, see the Justice Department’s press release.
