LOS ANGELES – A brazen scheme to bleed California’s Medi-Cal system dry has landed a Montclair pharmacist in federal court. Kyrollos Mekail, 36, of Moreno Valley, is facing charges of health care fraud after allegedly submitting over $300 million in fraudulent claims for prescription medications that were either medically unnecessary, never delivered to patients, or obtained through a network of illegal kickbacks. The Justice Department announced the charges today, detailing a calculated effort to exploit a vulnerable public health program.
According to court documents, Mekail owns and operates Monte Vista Pharmacy in Montclair (Monte VP LLC), a registered Medi-Cal provider. Between May 2022 and March 2023, authorities allege Mekail and his co-conspirators took advantage of a temporary suspension of prior authorization requirements within Medi-Cal – a program designed to provide healthcare to low-income Californians – to bill the system an astonishing $306,521,392 for high-reimbursement generic drugs. Of that staggering sum, Medi-Cal paid out approximately $204,032,151.
The scheme wasn’t about legitimate healthcare, the DOJ alleges. The medications billed included painkillers and even over-the-counter vitamins like Folite tablets. These prescriptions were reportedly unnecessary, often weren’t actually dispensed to patients, and were secured through the payment of tens of millions of dollars in kickbacks. Mekail allegedly disguised these payments as legitimate “consulting services,” attempting to conceal the illicit nature of the operation. The prior authorization suspension, intended to ease transitions within the Medi-Cal system, became a gaping loophole exploited for personal gain.
“This case alleges that a licensed pharmacist committed an enormous fraud against a public health program designed to help our state’s neediest residents,” stated United States Attorney Martin Estrada. “Bringing to justice those who unlawfully take from the public is a priority for my office, especially where those offenders harm the most vulnerable in our community.” Attorney General Merrick B. Garland echoed that sentiment, warning that “It does not matter if you are a trafficker in a drug cartel or a corporate executive… if you profit from the unlawful distribution of controlled substances, you will be held accountable.”
Federal investigators say Mekail allegedly funneled over $36 million of the fraudulently obtained Medi-Cal funds to two co-schemers as kickbacks for referring the bogus prescriptions. The FBI, which played a key role in the investigation, emphasized the far-reaching consequences of healthcare fraud. “Healthcare fraud victimizes patients, endangers the health of vulnerable people, and plunders healthcare programs,” said FBI Director Christopher Wray. “This wide-ranging collaboration demonstrates the FBI’s commitment to rooting out predatory healthcare fraud.”
Kyrollos Mekail is charged with two counts of health care fraud and is expected to be arraigned in United States District Court in the coming weeks. This case is part of the Department of Justice’s 2024 National Health Care Fraud Enforcement Action, signaling a continued crackdown on those who prey on the healthcare system for profit. The investigation remains ongoing, and further charges are possible. The scale of the alleged fraud underscores the vulnerability of large-scale public health programs to exploitation and the critical need for robust oversight and enforcement.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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