Category: Fraud
How a California crook committed $178 million worth of health care fraud — in just one year
A California man pleaded guilty on Monday to stealing millions of dollars in taxpayer funds through his participation in a prescription drug fraud scheme, the Department of Justice reported.
Paul Richard Randall, a 66-year-old man from Orange County, has admitted to submitting nearly $270 million in fraudulent claims to Medi-Cal, California’s version of the federal Medicaid program, from May 2022 to April 2023.
‘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.’
As part of his plea agreement, Randall confessed that he and his alleged accomplices took advantage of Medi-Cal by exploiting a policy change. The government program suspended the requirement for health care providers to obtain prior authorization before delivering services and medications for reimbursement while transitioning its prescription drug program to a new payment system.
Randall billed Medi-Cal millions of dollars each month for dispensing high-reimbursement, non-contracted, generic drugs through a pharmacy, including some pain medications. One such medication was Folite tablets, a vitamin available over the counter.
The DOJ contended that of the $270 million billed, Medi-Cal paid more than $178 million for 19 drugs that were either medically unnecessary, not provided to the patients, or both.
The funds provided by Medi-Cal were laundered to a third party to pay kickbacks to Randall and his alleged co-schemers.
RELATED: Vance’s task force shutters 221 hospices in ‘fraud king’ Gavin Newsom’s California
Leon Neal/Getty Images
Randall has been in federal custody since June 2025 and pleaded guilty to one count of wire fraud. He faces up to 30 years in prison. His sentencing hearing is scheduled for August 3.
One of Randall’s accomplices, Kyrollos Mekail, a 37-year-old from Moreno Valley, pleaded guilty in August 2024 to two counts of health care fraud. Mekail is awaiting sentencing.
A second alleged co-conspirator is charged with two counts of health care fraud.
RELATED: The Medicaid fraud problem is not going away
J. David Ake/Getty Images
“This defendant used a public health program as his personal piggy bank,” First Assistant U.S. Attorney Bill Essayli said of Randall. “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.”
“Thanks to the leadership of President Donald Trump, the Department, working closely with the Task Force to Eliminate Fraud, is supercharging efforts to take down every fraudster and bring them to justice,” acting Attorney General Todd Blanche said.
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Democrat fraudster begs to keep $800,000 state pension funded by taxpayers
A disgraced former lawmaker in Massachusetts is still hoping that taxpayers will help keep him comfortable in his retirement years, despite his criminal convictions.
In February 2021, Democratic ex-state Rep. David Nangle, who represented the Lowell area for two decades and even sat as vice chair of the House Ethics Committee for a time, pled guilty to nearly two dozen charges related to stealing money from his campaign for personal expenses, defrauding banks, and failing to report income to the IRS.
It was ‘only because he had been a member of the House of Representatives at the relevant time that he was in a position to illegally withdraw funds from his campaign account.’
According to the Boston Globe, Nangle stole $70,000 from his campaign and defrauded banks of over $300,000 in ill-begotten loans. Nangle has admitted that he has a gambling addiction, but prosecutors claimed that in addition to blowing money at the casino, he also spent money on luxury items and other personal expenses.
Nangle was sentenced to 15 months but served only about five months of that sentence behind bars.
The scandal also cost him his political career. Nangle was successfully primaried in September 2020 after 22 years in the seat.
After his conviction, the Massachusetts State Retirement Board decided to revoke the state pension he had accrued during his time in office, valued at over $800,000. A district court judge later upheld that decision.
Barry Chin/The Boston Globe/Getty Images
Nangle filed an appeal in Suffolk County Superior Court last week, requesting a review of “a judgment entered by the Lowell District Court, which affirmed the Defendant State Board of Retirement’s forfeiture of David M. Nangle’s vested state retirement allowance.”
Nangle has argued that his crimes were in “no way” related to his work in public office and that the stolen money did not involve “governmental funds or property,” the Globe said.
The retirement board and Lowell District Court Judge Pacinco DeCapua don’t seem to be buying it. According to the Globe, DeCapua even noted it was “only because he had been a member of the House of Representatives at the relevant time that he was in a position to illegally withdraw funds from his campaign account.”
Nangle, 65, has also claimed that he will be “destitute” without the pension, but the Globe, citing DeCapua’s ruling in January, reported that Nangle was working three jobs, collecting $6,000 a month for just one of them.
DeCapua, who acknowledged Nangle’s “road of redemption” regarding addiction, nonetheless determined that his actions “dishonored his title as a State Representative.”
Paul Craney of the Massachusetts Fiscal Alliance seems to agree. He told Blaze News in a statement: “A bank robber doesn’t get to keep his steal after he is convicted, and a state lawmaker shouldn’t be able to keep their pension after being convicted of fraud. If it were allowed, every bad impulse would be acted upon by our legislature.”
Nangle’s attorney did not respond to a request for comment from Blaze News.
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The Medicaid fraud problem is not going away
John Locke’s “Second Treatise of Government,” which inspired many of our nation’s founding principles, makes the simple assertion that the basic role of government is to protect the lives, liberty, and property of the consenting governed. Though our federal government has long since strayed from this purpose, opportunities to defend it are always a worthy endeavor.
That is why President Trump’s appointment of Vice President JD Vance to lead a new task force dedicated to rooting out fraud in the United States is a welcome undertaking.
There’s no incentive for states to police fraud: They can’t go over budget, and the feds still pick up the tab for illegitimate claims.
For too long, numerous states have abused federal dollars, failing to ensure that many recipients are even real or qualified for federal funds and leaving taxpayers to pick up the tab. Contrary to the media narrative that the administration is simply on a blue-state witch hunt, the billions of dollars stolen in Minnesota (yet to be returned) tell a different story.
For once, the executive branch is demonstrating proper oversight in the service of the American taxpayer, and it is long overdue.
Federal prosecutors estimate that, across 14 Minnesota Medicaid-funded programs, fraud totals more than $9 billion. That number is half of all federal matching funds allocated to the state since 2018.
It’s often said that taxation is theft. In Minnesota, it appears to be policy.
Correctly, Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, and Vice President JD Vance, have turned off the credit card until Minnesota officials can clean up their act.
Following a January CMS effort to get the state into compliance, the agency is also deferring payment for Q4 of 2025, having identified $259.5 million in fraudulent and illegal claims.
Like clockwork, officials, including Gov. Walz, began to plead on behalf of victims of a potential Medicaid fallout, portraying themselves as the defenders of the very Minnesotans victimized by the fraud they enabled.
In a House Oversight Committee hearing just a few weeks ago, Walz and Attorney General Keith Ellison faced questions with a surprising lack of urgency. When asked if he felt the state’s efforts to return funds were successful, Walz denied culpability: “I can’t speak to that … I don’t have any part in that.”
Despite media outlets defending the state’s “good-faith effort” to make amends, the estimated $80 million returned still falls short of even 1% of the money stolen from taxpayers.
Similarly, Walz refused to elaborate on whether government officials who enabled fraud had been fired. During the Oversight Committee’s investigation, it was revealed that dozens of whistleblowers who reported fraud inside the Minnesota Department of Human Services were retaliated against. Minnesota DHS hired outside entities to investigate staff who fell out of line.
The reason? Dozens of whistleblowers reported that they were told not to say anything about the fraud for fear of being called “racist” or “Islamophobic.”
Not only did Walz and Ellison know about massive welfare fraud in the state, but they went to great lengths to keep it that way, afraid that cracking down on the disproportionate amount of Medicaid fraud in the Somali community would harm them politically.
RELATED: Tax-exempt hospitals are not putting their patients first
David M. Levitt/Bloomberg/Getty Images
This level of fraud is historic. But rather than making a good-faith effort to identify fraud and recover taxpayer funds, Minnesota may become the first state to pursue the unprecedented step of suing CMS instead of using the agency’s internal appeals process. While state officials claim they are at a loss over how to satisfy CMS requirements, doubling down on fraud is doubtlessly not the solution CMS is looking for.
Vance, now tasked with developing a nationwide anti-fraud strategy, should build on CMS’ approach in Minnesota, one that directly targets the root of the problem.
Minnesota, like many states, receives a Federal Medical Assistance Percentage of 90% for adults covered under the ACA expansion. In practice, that means for every dollar the state spends, the federal government contributes nine. States that spend more get more. There’s no incentive for states to police fraud: They can’t go over budget, and the feds still pick up the tab for illegitimate claims, ultimately passing the balance on to taxpayers.
In context, CMS’ Medicaid funding pause in Minnesota functions as a blunt but effective check: no oversight, no money. Should Minnesota decide to bolster program integrity and ensure that Medicaid assistance only goes to Americans who are truly in need, it can confidently spend its cash again with the assurance of federal backing.
In the meantime, every other state would be wise to take note and get its house in order before Vance drops the hammer.
Springsteen’s ‘Streets of Minneapolis’ an Ode to Fascists Obstructing the Law
Do you remember when Bruce Springsteen wrote that rousing anthem to honor Laken Riley? Me neither. But on Wednesday, he…
‘STOP THE SCAMS!’ Trump announces new office in DOJ dedicated to investigating fraud
With more and more fraud being investigated and exposed across the country, the Trump administration has created a new office specially dedicated to prosecuting these types of crimes.
On Wednesday night, President Trump announced the creation of the office and his nominee to run it.
‘My Administration has uncovered Fraud schemes in States like Minnesota and California, where these thieves have stolen Hundreds of Billions of Taxpayer Dollars.’
“I am pleased to nominate Colin McDonald to serve as the first ever Assistant Attorney General for National FRAUD Enforcement, a new Division at the Department of Justice, which I created to catch and stop FRAUDSTERS that have been STEALING from the American People,” Trump said on Truth Social. “My Administration has uncovered Fraud schemes in States like Minnesota and California, where these thieves have stolen Hundreds of Billions of Taxpayer Dollars.”
Trump called McDonald a “very Smart, Tough, and Highly Respected AMERICA FIRST Federal Prosecutor” and promised that the administration would “RESTORE INTEGRITY” to the federal programs.
RELATED: ‘PLAYING WITH FIRE!’ Trump responds to Minneapolis Mayor Frey’s latest act of defiance
Todd Blanche and Pam BondiPhoto by MANDEL NGAN/AFP via Getty Images
“STOP THE SCAMS!” Trump concluded.
McDonald, though not a well-known figure on the national stage, has a resume built for the new position.
For example, McDonald successfully prosecuted a large-scale conspiracy in 2020 that the judge in the case called “staggering in its breadth, its scope, and its audacity.”
The conspiracy case, which involved multiple people including the former police chief of Honolulu, brought multiple charges and sent several people to prison for years.
Todd Blanche, the deputy attorney general under Pam Bondi, signaled his approval of the choice on X: “Colin is a rockstar, who was instrumental in our team’s mission of Making America Safe Again. He is a consummate prosecutor who loves God, family, and country and will serve the President and the American people well.”
Likewise, ambassador and chief of protocol Monica Crowley cheered on the decision: “President Trump is putting an end to the United States of Fraud.”
The announcement was made amid ongoing talks between the Trump administration and the leadership of Minnesota, one of the primary hot spots of widespread fraud.
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More Virgin Islands corruption: Another appointee of Democrat governor reaps whirlwind
Albert Bryan, the Democrat governor of the Virgin Islands, has apparently surrounded himself in recent years with fraudsters and grafters.
Bryan’s former commissioner of the territory’s parks and recreation department, Calvert White, was sentenced on Friday to five years in prison following his conviction for one count of honest services wire fraud and one count of bribery concerning programs receiving federal funds.
‘This is unacceptable.’
The sentencing — relatively light given that the fraud offense carries a maximum penalty of 20 years in prison and the bribery offense carries a maximum penalty of 10 years in prison — took place just weeks after the Democrat governor’s former police commissioner and former budget director were found guilty of extensive corruption.
White, who resigned last January, solicited and accepted a bribe from David Whitaker, the founder of the cybersecurity firm Mon Ethos Pro Support — a bribe that was facilitated by local businessman Benjamin Hendricks.
In exchange for $16,000 to later be paid by Hendricks, White agreed to help Whitaker obtain a contract valued at over $1.4 million for the installation of security cameras at U.S. Virgin Islands Department of Sports, Parks, and Recreation properties.
The Justice Department indicated that as part of the scheme, which lasted from late 2023 until the FBI intervened in June 2024, White provided confidential bidding information to Whitaker and proactively worked in an official capacity to ensure that Whitaker would get the contract.
Photo by Alex Wong/Getty Images
“Calvert White rigged a public bid process in exchange for a bribe,” said Assistant Attorney General A. Tysen Duva of the DOJ’s Criminal Division. “He abused the trust of those who live in the community he was supposed to serve.”
While not ordered to pay a fine, White was required to forfeit $5,000, the amount he received from Whitaker via Hendricks as partial payment for the contract, reported the St. Thomas Source. He will reportedly wear a GPS monitoring bracelet until he surrenders to authorities on March 2.
For his role in the scheme, Hendricks was sentenced last week to 68 months in prison.
“Public officials take an oath based on trust and assume a responsibility of service to the people,” said Claudia Dubravetz, acting special agent in charge of the FBI’s San Juan field office. “When that trust is violated through acts of corruption, it undermines confidence in government and harms the communities it is meant to serve. This is unacceptable.”
Whitaker, who pleaded guilty in 2024 to two counts of wire fraud and one count of bribery and is set to be sentenced later this year, was apparently also in cahoots with former Virgin Islands Police Department Commissioner Ray Martinez and former Virgin Islands Office of Management and Budget Director Jenifer O’Neal.
Martinez was found guilty last month of five counts of honest services wire fraud, one count of bribery concerning programs receiving federal funds, one count of money laundering conspiracy, and two counts of obstruction of justice. O’Neal was found guilty of two counts of honest services wire fraud, one count of bribery concerning programs receiving federal funds, and one count of money laundering conspiracy.
The DOJ indicated that Martinez accepted roughly $100,000 in bribe payments from Whitaker — “including cash, luxury travel, personal expenses, private-school tuition, and restaurant equipment” — in exchange for wielding his official authority to approve invoices and award Whitaker a $1.4 million contract federally funded under the federal American Rescue Plan Act.
O’Neal knowingly approved a $70,000 inflated invoice under that contract and, in exchange, accepted a $17,730 lease payment for her business in federal funds from the inflated invoice.
Blaze News has reached out to Gov. Bryan’s office for comment.
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Graham Platner Solicits Donations for Maine Anti-ICE Group Led By Accused Somali Fraudsters
Senate candidate Graham Platner (D., Maine) urged supporters to donate to an anti-ICE group led by several Somalis tied to a nonprofit under congressional investigation for allegedly defrauding the state of millions of dollars in Medicaid payments. The day after ICE launched a statewide operation targeting illegal aliens in Maine, Platner promoted the Maine Immigrants’ Rights Coalition (MIRC), a taxpayer-funded nonprofit that touted its “ICE Watch Hotline” earlier this month. Its board has included Deqa Dhalac and Nathan Davis, who have been named persons of interest in a congressional probe over their leadership roles at Gateway Community Services Maine.
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‘Sparkle Beach Ken’ Is Too Kind To Gavin Newsom
The California governor correctly figures that if he stays on offense, his own dismal record will be ignored — even if that offense is odd.
