Last December, the auditor reported that EDD’s UI program—which remains on the auditor’s “High Risk” list—had a fraud rate of 7.6 percent in 2023 and 7.9 percent in 2024. Applied to the state’s UI spending, those figures suggest more than $1 billion in stolen taxpayer funds since the pandemic. “EDD continues to have high rates of improper UI payments, including fraudulent payments,” the auditor wrote. “These inadequacies have resulted in a substantial risk of serious detriment to the State and its residents.”
While many states dealt with UI scams during the pandemic, California stands in a class of its own. At best, the EDD’s performance amounted to mass government incompetence; at worst, it reflects total indifference to fraud.
“This happens in every single state,” Talcove concluded, “but it happens a lot more in California.”
Total budgeted Medi-Cal spending—which includes federal, state, and local contributions—has more than doubled on the governor’s watch, rising from $93.5 billion the year before he took office to $196.7 billion in the current annual budget. During the same period, California’s resident population declined by 0.2 percent.
Experts have long warned of Medi-Cal’s vulnerabilities to fraud. The state auditor first designated “Medi-Cal Eligibility” as a “high-risk” issue in 2007 and has applied that label to it ever since. But the state government has made little progress in addressing what the auditor calls “eligibility discrepancies” that present a “substantial risk of serious financial detriment to the State.” California’s attorney general has conceded that “Medi-Cal fraud could reach billions of dollars annually.”
In some cases, prosecutors say, that is precisely what happened. In one instance, Paul Richard Randall, Kyrollos Mekail, and Patricia Anderson allegedly “took advantage” of Medi-Cal’s loosened restrictions as part of a scheme that defrauded taxpayers of more than $178 million. The conspirators allegedly used a business called Monte Vista Pharmacy to process fraudulent prescriptions; Randall and others allegedly laundered the proceeds through third parties to fund kickbacks to Anderson and obscure the operation from law enforcement, according to a 2025 Department of Justice press release. Mekail had pleaded guilty to criminal charges in August 2024, and Randall is reportedly expected to do the same this year.
Hot Forum Topics
