Trending Now - California Man Pleads Guilty to $270M Medi-cal Fraud Scheme

WHO:

Fox News - Paul Richard Randall, 66, of Orange, California.

Fox News - First Assistant U.S. Attorney Bill Essayli.

Fox News - Acting Attorney General Todd Blanche.

Fox News - California Governor Gavin Newsom.

Fox News - Rep. Kevin Kiley, Independent congressman from California.

Fox News - Rep. Tim Burchett, Republican congressman from Tennessee.

Fox News - Haywood Talcove, CEO of LexisNexis Special Services & LexisNexis Risk Solutions Government.

WHAT:

Fox News - Paul Richard Randall pleaded guilty to one count of wire fraud.

Fox News - Randall billed Medi-Cal more than $269 million and was paid over $178 million.

Fox News - Randall's scheme involved billing for 19 expensive, non-contracted drugs that were not medically necessary or provided.

Fox News - Randall faces a statutory maximum sentence of 30 years in federal prison.

NY Post - The fraud scheme involved submitting over $270 million in bogus claims to Medi-Cal.

WHERE:

Fox News - Orange, California.

Fox News - Washington, D.C. (Department of Justice building).

Fox News - California (statewide fraud concerns).

WHEN:

Fox News - Randall's guilty plea was announced on April 7, 2026.

Fox News - Randall will be sentenced in August 2026.

Fox News - Gavin Newsom spoke at the 2026 SXSW Conference on March 15, 2026.

WHY:

Fox News - The scheme exploited a temporary rule change in Medi-Cal that removed the need for pre-approval on certain drugs.

Fox News - The guilty plea is part of a broader effort to combat fraud in California, described as a "war on fraud" by the administration.

HOW:

Fox News - Randall and his co-conspirators used a pharmacy they controlled to bill Medi-Cal for expensive medications.

Fox News - They laundered the illegal proceeds by routing money through a third party and paying kickbacks.

(UPDATED April 8, 2026 19:25 UTC)

Paul Richard Randall, a 66-year-old from Orange, California, pleaded guilty to one count of wire fraud after billing Medi-Cal more than $269 million for expensive, non-contracted drugs that were neither medically necessary nor provided. Randall's scheme, which exploited a temporary rule change in Medi-Cal, involved submitting over $270 million in bogus claims, and he now faces a maximum sentence of 30 years in federal prison, with sentencing scheduled for August 20th26. California Governor Gavin Newsom has emphasized that this guilty plea is part of a broader effort to combat fraud in the state, which his administration has described as a "war on fraud."