California Dropped a Medi-Cal Safeguard. He Drove $269 Million Through the Gap.https://pjmedia.com/david-manney/2026/09/10/california-dropped-a-medi-cal-safeguard-he-drove-269-million-through-the-gap-n4957099Paul Randall found a weak spot in California's Medi-Cal prescription system and attacked it with breathtaking speed. In just 11 months, he caused more than $269.1 million in fraudulent claims to be submitted. Medi-Cal paid about $178.7 million before the ride ended.
On Wednesday, a federal judge sentenced the 67-year-old Orange County man to 30 years in prison and ordered him to repay $178,746,556. Randall pleaded guilty in April to wire fraud committed while he was already out on release in another federal criminal case.
From the DOJ:
“Paul Randall exploited a temporary change in Medi-Cal’s prescription drug reimbursement system to steal millions of hard-earned taxpayer dollars meant to help California’s most vulnerable residents,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Today’s sentence sends a clear message to those who would abuse our public benefit programs to line their own pockets: The Fraud Division will aggressively prosecute you and seek to hold you accountable to the fullest extent under the law.”
“This case exposes unbridled greed at the expense of patients and taxpayers. Stealing funds meant for essential care and corrupting medical decisions through kickbacks is deeply harmful and erodes trust in our health care system,” said Acting Deputy Inspector General for Investigations Miranda L. Bennett of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG, together with our law enforcement partners, will continue to pursue those who exploit federal health care programs and ensure they are held fully accountable.”
Medi-Cal is a Federally funded state-administered program. The Feds, not the State of California, prosecuted the fraudster. Over a quarter of a billion $$ of fraud, and the State of California merely assisted the DOJ's investigation.