California man goes to jail for defrauding Medi-Cal for $20 million and selling drugs illegally on the black market
California – Oscar B. Abrons III, a healthcare clinic operator from Southern California, has been sentenced for orchestrating a multi-million-dollar fraud scheme that targeted Medi-Cal, California’s Medicaid program. California Attorney General Rob Bonta announced on Friday that Abrons will serve four years in jail after pleading guilty to participating in a prescription medication diversion operation that bilked the state out of more than $20 million.
The sentencing took place in Orange County Superior Court, where it was established that the Medi-Cal program suffered losses exceeding $20 million. A separate restitution hearing is planned to determine exactly how much Abrons will be required to repay.
Abrons’ sentencing follows the earlier convictions of his co-conspirators, Steven Derrick Fleming and Dr. Mohamed Waddah El-Nachef. Fleming received a five-year prison sentence, while El-Nachef was given five years in local custody and surrendered his medical license as part of his plea. The California Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse (DMFEA) led the investigation and prosecution, unraveling how the trio defrauded taxpayers and endangered patient health for profit.
According to state prosecutors, between June 2014 and October 2016, Abrons and Fleming jointly operated an unlicensed facility called God’s Property. At the clinic, they paid Medi-Cal patients cash incentives to acquire prescriptions they didn’t medically need, including HIV medications, antipsychotics, and other controlled substances.
These prescriptions were written by Dr. El-Nachef, who during the scheme’s peak became the state’s highest prescriber of HIV medications. Once dispensed, the drugs were sold illegally, creating a lucrative black market pipeline while draining public healthcare funds.
“When healthcare operators take advantage of Medi-Cal for personal gain, not only are they stealing from taxpayers, but they are also undermining the health and trust of our communities,” said Attorney General Bonta. “We will not tolerate this unlawful behavior and will continue to ensure that Medi-Cal services are delivered to those who need them most and hold any individual or entity accountable that exploits this program.”
The DMFEA, the branch of the Attorney General’s office responsible for prosecuting such fraud cases, receives significant federal funding for its operations. For federal fiscal year 2025, DMFEA is supported by a grant totaling nearly $69.2 million from the U.S. Department of Health and Human Services, with the remaining funds provided by the State of California. The agency continues to prioritize cases involving abuse, neglect, and fraud that victimize elderly or dependent adults, as well as fraud targeting Medi-Cal.
This case highlights the state’s aggressive stance on rooting out fraud within public healthcare programs and serves as a warning to anyone seeking to exploit services meant to protect the most vulnerable Californians.
A copy of the sentencing minutes is available here.
