SoCal Man Pleads Guilty In $270M Scam
A federal case out of Orange County ended in a guilty plea this week. Prosecutors say a scheme ran for less than a year but hit Medi‑Cal for huge sums.
“Paul Richard Randall, 66, of Orange, pleaded guilty Monday to one count of wire fraud committed while on release. He has been in federal custody since June 2025,” the DOJ said.
According to the government, Randall ran billing through a business called Monte Vista Pharmacy. The pharmacy submitted claims for expensive prescription drugs that, prosecutors say, contained generic ingredients that were “not medically necessary.”
The timing mattered. Medi‑Cal had suspended its prior authorization rule while switching to a new payment system. That gap, prosecutors say, let Monte Vista bill millions each month.
About $270 million was billed in 11 months. Randall and his co‑conspirators reportedly received roughly $178 million of that.
Prosecutors say they laundered money and funneled payments through third parties to cover kickbacks. One named recipient was Patricia Anderson, 58, of West Hills.
Randall faces a heavy federal sentence. If convicted on top counts, he could get up to 30 years in prison, officials say.
The Justice Department used blunt language about the case. “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 — consistent with the President’s war on fraud — will not turn a blind eye while criminals fleece taxpayers.”
Acting Attorney General Todd Blanche tied the prosecution to broader efforts. “Thanks to the leadership of President Donald Trump, the Department, working closely with the Task Force to Eliminate Fraud, is supercharging efforts to take down every fraudster and bring them to justice,” said Acting Attorney General Todd Blanche.
Blanche added a broader warning. “In one day, the Department prosecuted the theft of a half-billion in taxpayer dollars. All those ripping off the American people are on notice,” Blanche added.
Justice officials emphasized protecting programs like Medi‑Cal. “The defendant was a repeat fraudster who caused Medi-Cal, a program designed to help those in need, to be billed nearly $270 million for expensive and medically unnecessary medications,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division.
“He and his co-schemers stole over $178 million through false and fraudulent claims for these medications, lining their own pockets with public funds. The Criminal Division will aggressively prosecute those who defraud Medicaid and exploit taxpayer-funded benefit programs,” he said.
HHS investigators stressed program integrity. “Schemes that bill Medicaid for costly drugs that patients never needed or received threaten the integrity of the program,” said Acting Deputy Inspector General for Investigations Scott J. Lampert of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).
“This plea shows our firm resolve, alongside our law enforcement partners, to exposing such fraud operations, ensuring those responsible are held accountable, and safeguarding taxpayer-funded health care programs,” he said.
The case is another reminder that gaps in oversight can be expensive. Federal authorities say they’ll keep hunting schemes that exploit taxpayer‑funded health care.