California fraud concerns ramp up as man pleads guilty to massive scheme using taxpayers as his 'piggy bank'
As concerns about rampant fraud continue to grow nationwide, particularly in California, federal authorities announced the guilty plea of a man charged in a scheme to defraud taxpayers out of...
By Fox News · Fox News
As concerns about rampant fraud continue to grow nationwide, particularly in California , federal authorities announced the guilty plea of a man charged in a scheme to defraud taxpayers out of hundreds of millions of dollars. Paul Richard Randall, 66, of Orange, California, has plead guilty to one count of wire fraud after local authorities say he billed Medi-Cal, California's version of Medicaid, more than $269 million and was paid out more than $178 million for "19 expensive, non-contracted drugs containing low-cost, generic ingredients that were not medically necessary, not provided, or both." Randall and his co-conspirators took advantage of a temporary rule change in Medi-Cal that removed the need for pre-approval on certain drugs. Using a pharmacy they controlled, they billed Medi-Cal huge amounts each month for expensive generic medications that normally would’ve required approval. Randall and his associates then laundered the illegal proceeds by routing money through a third party, using it to pay kickbacks to Anderson, further the scheme, and hide the transactions from law enforcement. VANCE REVEALS $19B FRAUD UNCOVERED IN MINNEAPOLIS, HINTS CALIFORNIA IS NEXT TARGET "This defendant used a public health program as his personal piggy bank," First Assistant U.S. Attorney Bill Essayli said in a press release. "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." The press release says that Randall will be sentenced in August and will face a statutory maximum sentence of 30 years in federal prison. DEPUTY AG TODD BLANCHE SHEDS LIGHT ON NEW DOJ FRAUD DIVISION TO ADDRESS 'INSANE' PROBLEM California has been at the center of fraud concerns in recent weeks and has been called out by the federal anti-fraud task force led by Vice President JD Vance, which recently revealed a staggering increase in California hospice and healthcare providers that w…