LA's top federal prosecutor makes staggering claim about scale of California fraud

California has been rocked by revelations of a significant Medi-Cal fraud scheme, as a top federal prosecutor in Los Angeles has brought attention to the staggering scale of deceit within the state. This comes following the apprehension of an individual accused of orchestrating a $270 million scam.

Bill Essayli, the First Assistant US Attorney for the Central District of California, spoke candidly on Fox News about the case, highlighting a lapse in the state’s oversight that allowed the fraud to occur. He detailed how this oversight failure provided the perfect opportunity for exploitation over a span of nearly a year.


Headshot of Paul Richard Randall.
Paul Randall, 66, admitted to orchestrating a massive billing scam.

Authorities say the scheme took off after Medi-Cal temporarily suspended its prior authorization requirement, a safeguard meant to ensure treatments are medically necessary before reimbursement.

Without it, Randall and his accomplices allegedly billed tens of millions of dollars each month unchecked.

Randall pleaded guilty to one count of wire fraud committed while on release and has been in custody since June 2025. He faces up to 30 years in federal prison when he’s sentenced on August 3.

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