A California man pleaded guilty on Apr. 7 to submitting nearly $270 million in fraudulent claims to the state’s Medicaid program, Medi-Cal, for expensive prescription drugs that were medically unnecessary and often not provided to patients.
The case is significant as it highlights large-scale abuse of taxpayer-funded health care programs and ongoing efforts by federal authorities to address fraud in public health systems. The Department of Justice announced this case alongside two others at a press conference supporting President Trump’s Task Force to Eliminate Fraud.
“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. “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.”
Assistant Attorney General A. Tysen Duva said, “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. 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.”
Court documents show Paul Randall worked with pharmacist Kyrollos Mekail and nurse practitioner Patricia Anderson during a period when Medi-Cal had suspended prior authorization requirements for certain drugs as part of a new payment system transition. Using Monte Vista Pharmacy owned by Mekail, they billed tens of millions monthly for high-reimbursement drugs made from cheap generic ingredients not subject to standard price caps.
Randall paid illegal kickbacks for patient information and prescriptions signed without medical review or necessity by Anderson. Medications included pain creams and vitamins billed at thousands per prescription—such as one meloxicam order charged at about $13,424 despite its typical cost being less than $25.
Randall admitted responsibility for over $269 million in false claims between May 2022 and April 2023 while on release from another criminal case. He agreed in his plea deal to surrender assets obtained through fraud including more than $17 million across bank accounts, three vehicles, seven properties, sports memorabilia—and authorities have seized about $126.5 million so far.
Sentencing is set for August 3; Randall faces up to 30 years in prison pending judicial consideration under sentencing guidelines. Mekail pleaded guilty last August; Anderson did so this April—both await sentencing.
Investigations were conducted by the FBI along with federal health officials from HHS-OIG and California’s Department of Justice.
The Justice Department operates throughout all U.S states as well as internationally with more than 115,000 employees according to its official website. It serves as the main federal law enforcement agency focused on upholding rule of law nationwide as detailed online. Merrick Garland has led the department since March 11, 2021 according to official records, overseeing major prosecutions such as those following the Oklahoma City bombing as noted by DOJ sources.
