Fraudster Charged in $270M California Medi-Cal Scam Had Prior Kickback Conviction

Paul Richard Randall pleaded guilty to wire fraud after allegedly submitting bogus claims for pricey prescription drugs with generic ingredients.

Apr. 9, 2026 at 8:52pm

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An extreme close-up photograph of a pile of prescription pill bottles and medical equipment against a pitch-black background, conceptually representing the scale and gritty nature of a healthcare fraud investigation.A recent wave of massive healthcare fraud schemes has exposed vulnerabilities in government programs like Medi-Cal, raising concerns about oversight and accountability.Orange Today

A 66-year-old Orange County man named Paul Richard Randall has pleaded guilty to wire fraud for his role in a $270 million Medi-Cal fraud scheme. Randall had previously been convicted in 2012 for a hospital kickback scheme where he paid doctors and chiropractors up to $20,000 per surgery referral.

Why it matters

The new fraud charges against Randall highlight the persistent problem of healthcare fraud in California, which has led to billions in losses for taxpayer-funded programs like Medi-Cal. Randall's history of criminal activity also raises questions about the effectiveness of the criminal justice system in deterring repeat offenders.

The details

According to court documents, Randall's latest scheme involved submitting fraudulent claims to Medi-Cal for expensive prescription drugs that contained generic ingredients that patients either didn't need or never received. Randall and his accomplices allegedly stole $270 million over an 11-month period through this scheme. Randall had previously been convicted in 2012 for a kickback scheme where he paid doctors and chiropractors up to $20,000 per surgery referral while working as a marketer at an Orange County hospital.

  • In 2012, Randall was arrested and charged with conspiracy to commit mail fraud for his hospital kickback scheme.
  • From 2015 to 2017, Randall was accused of evading income tax payments, cashing over $100,000 worth of checks.
  • On April 24, 2023, Randall was sentenced to 23 months in custody for the 2012 kickback scheme.
  • On Monday, Randall pleaded guilty to the $270 million Medi-Cal fraud scheme.
  • Randall's sentencing hearing for the Medi-Cal fraud is scheduled for August 3, 2026.

The players

Paul Richard Randall

A 66-year-old Orange County man who pleaded guilty to wire fraud for his role in a $270 million Medi-Cal fraud scheme. Randall had previously been convicted in 2012 for a hospital kickback scheme.

Summit Medical Group

A medical group that Randall set up to recruit chiropractors and physicians to refer workers' compensation patients for spinal surgeries in exchange for kickbacks.

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What’s next

Randall's sentencing hearing for the $270 million Medi-Cal fraud scheme is scheduled for August 3, 2026, where he could face up to 30 years in federal prison.

The takeaway

Randall's history of healthcare fraud, including a prior conviction for a hospital kickback scheme, highlights the ongoing challenge of rooting out persistent offenders in the medical industry and the need for stronger deterrents and oversight to protect taxpayer-funded programs like Medi-Cal.