Orange County, California – An Orange County man who prosecutors say helped turn a public health benefit into a massive fraud operation has admitted his role in a scheme that sent nearly $270 million in bogus claims through Medi-Cal over less than a year, according to the U.S. Department of Justice.
Paul Richard Randall, 66, of Orange, pleaded guilty Monday to one count of wire fraud committed while on release. Federal authorities said he has remained in custody since June 2025. His sentencing is set for August 3 before U.S. District Judge Mark C. Scarsi, and he now faces up to 30 years in federal prison.
The case centers on a narrow but costly opening in Medi-Cal’s prescription drug system. During an ongoing transition to a new payment structure, the program temporarily suspended prior authorization requirements for certain medications. Prosecutors said Randall and his co-schemers moved quickly to exploit that change through Monte Vista Pharmacy, submitting claims for expensive prescription drugs made with low-cost generic ingredients.
According to Randall’s plea agreement, the medications tied to the scheme were often not medically necessary and, in many cases, were never provided to the patients listed in the claims. Some were purportedly prescribed for pain treatment, including Folite tablets, a vitamin that is available over the counter.
From May 2022 through April 2023, Monte Vista Pharmacy billed Medi-Cal more than $269 million for 19 expensive, non-contracted drugs, authorities said. The program paid out more than $178 million on those claims. Randall admitted that at least approximately $269,120,829 in false and fraudulent claims were transmitted by wire, and that Medi-Cal paid at least approximately $178,746,556 tied to the operation.
Prosecutors said Randall worked alongside Kyrollos Mekail, 37, of Moreno Valley, and Patricia Anderson, 58, of West Hills. Authorities allege the proceeds were later moved through third parties to fund kickbacks, further the fraud, and hide the money trail from law enforcement.
Federal officials described the case as a direct attack on a taxpayer-funded program meant to serve vulnerable Californians. Investigators say the scheme not only drained public money, but also undermined trust in a health care system designed to provide legitimate treatment to people in need.
The wider case is still unfolding. Mekail pleaded guilty in August 2024 to two counts of health care fraud and is awaiting sentencing. Anderson has been charged with two counts of health care fraud.
The investigation is being led by the U.S. Department of Health and Human Services Office of Inspector General, the FBI, and the California Department of Justice. Prosecutors from the Justice Department and the U.S. Attorney’s Office in Los Angeles are handling the case, while federal asset forfeiture officials are pursuing recovery of illicit proceeds.