Arizona Cardiology Group to Pay $4.75 Million Over Unnecessary Vein Ablations
PHOENIX – A physician group based in the Phoenix metropolitan area and three individual doctors have agreed to pay $4.75 million to resolve allegations that they performed medically unnecessary vein ablations and billed federal health programs, the Justice Department announced Thursday.
Tri-City Cardiology, P.C., along with Dr. Jaskamal Kahlon, Dr. Joshua D. Cohen, and Dr. M. Joshua Berkowitz, settled claims under the False Claims Act that from January 2017 through April 2022 they knowingly performed ablations on perforator veins that did not meet accepted medical standards for treatment.
Perforator veins are small vessels that connect deep and superficial leg veins and require treatment only under specific circumstances. Federal prosecutors alleged that the physicians incorrectly measured or documented the duration of outward blood flow, vein diameter, patient symptoms, and conservative therapy measures — creating the false appearance that the procedures were justified.
“Physicians should not prioritize profit over patient needs,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Medicare and other federal programs pay only for medical care that meets accepted standards, and the falsification of medical records undermines efforts to assess whether medical care was appropriate.”
The settlement resolves allegations that Tri-City Cardiology and the three doctors knowingly submitted false claims to Medicare and other federal health programs. No determination of liability has been made; the agreement resolves allegations only.
“Paying for unnecessary medical procedures reduces federal programs’ capacity to pay for truly necessary procedures,” said Timothy Courchaine, U.S. Attorney for the District of Arizona. “When medical providers do not respect the difference between the two and bill in the interest of their own bottom line instead of their patients, the United States Attorney’s Office has pursued and will continue to pursue appropriate recoveries to protect taxpayer funds.”
Tri-City Settlement Agreement – Executed.pdf
California Man Pleads Guilty to $270 Million Medi-Cal Fraud Scheme in President’s Anti-Fraud Crackdown
WASHINGTON – A California man pleaded guilty Tuesday to orchestrating a scheme that submitted nearly $270 million in fraudulent claims to California’s Medicaid program, Medi-Cal, for expensive prescription drugs that were medically unnecessary and often never provided to patients.
Paul Randall, 66, of Orange, entered his plea to one count of wire fraud, admitting that from May 2022 to April 2023 he caused at least $269 million in false claims, of which Medi-Cal paid roughly $178.7 million. The scheme exploited a temporary suspension of prior-authorization requirements during a state payment system transition.
The Department of Justice announced Randall’s case alongside two others at a Washington press conference Tuesday in support of President Trump’s Task Force to Eliminate Fraud.
“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,” said Acting Attorney General Todd Blanche. “All those ripping off the American people are on notice.”
According to court documents, Randall, pharmacist Kyrollos Mekail (owner of Monte Vista Pharmacy), and nurse practitioner Patricia Anderson billed Medi-Cal tens of millions of dollars monthly for high-reimbursement drugs containing cheap generic ingredients. The drugs were manufactured in unique dosages or package quantities not subject to Medi-Cal’s maximum price lists.
Randall paid illegal kickbacks to patient marketers for Medi-Cal beneficiary information, then paid additional kickbacks to Anderson to sign pre-filled prescriptions for 19 high-reimbursement generic drugs. Anderson never met the patients, reviewed their medical records, or determined medical necessity.
The medications included pain creams and Folite tablets—an over-the-counter vitamin. One prescription for meloxicam 5 mg, a generic drug typically costing $5 to $25 for a 30-day supply, was billed at approximately $13,424.
Randall received roughly 40% of Monte Vista’s profits from the fraudulent claims. He laundered proceeds by transferring money to a third party to pay kickbacks to Anderson, attempting to conceal the crime.
As part of his plea agreement, Randall agreed to forfeit assets including more than $17 million in bank accounts, three vehicles, seven real properties, and sports memorabilia. To date, the government has seized approximately $126.5 million in assets tied to the scheme, including $111 million in bank funds and securities, nine luxury vehicles (worth about $1 million), nine luxury properties (roughly $13.5 million), and over $1 million in sports memorabilia.
“The defendant was a repeat fraudster who caused Medi-Cal, a program designed to help those in need, to be billed nearly $270 million for expensive and medically unnecessary medications,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “He and his co-schemers stole over $178 million through false and fraudulent claims, lining their own pockets with public funds.”
Randall committed the offense while on release in another criminal case, according to his plea agreement. He faces a maximum sentence of 30 years in prison at his Aug. 3 sentencing.
Co-defendant Mekail pleaded guilty in August 2024 to two counts of health care fraud and awaits sentencing. Anderson pleaded guilty in April 2025 to two counts of health care fraud and also awaits sentencing.
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