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Fraud

California Attorney General Announces Sentencing of Healthcare Clinic Operator in Prescription Medication Diversion Scheme

Strategic Insights

— 2 min read

California Attorney General Rob Bonta announced the sentencing of Oscar B. Abrons III, a Southern California healthcare clinic operator, for his involvement in a prescription medication diversion scheme that defrauded Medi-Cal, the state's Medicaid program, of more than $20 million. Abrons was sentenced to four years in jail and stipulated that the loss to the Medi-Cal program exceeded $20 million.

The scheme, carried out by Abrons and his co-conspirators, involved paying cash to Medi-Cal beneficiaries in exchange for obtaining medically unnecessary prescriptions for HIV medications, antipsychotics, and controlled substances, which were then sold to buyers on the illicit market. The diversion scheme resulted in an estimated loss of over $20 million to Medi-Cal.

Key Takeaways:

  • The sentencing of Oscar B. Abrons III marks a significant victory in the prosecution of a prescription medication diversion scheme that defrauded Medi-Cal of more than $20 million.
  • The scheme involved paying cash to Medi-Cal beneficiaries in exchange for obtaining medically unnecessary prescriptions for HIV medications, antipsychotics, and controlled substances.
  • Abrons' co-conspirators, Steven Derrick Fleming and Mohamed Waddah El-Nachef, were previously sentenced to five years in state prison and a five-year local custody sentence, respectively.
  • The prosecution of the individuals was carried out by the California Department of Justice's Division of Medi-Cal Fraud and Elder Abuse (DMFEA).
  • The DMFEA receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $69,244,976 for Federal fiscal year (FY) 2025.
  • The scheme was carried out from June 23, 2014, to October 1, 2016, during which time El-Nachef became the top prescriber of HIV medications in the state.
  • Medi-Cal suffered an estimated loss of over $20 million as a result of the scheme.
  • Attorney General Bonta emphasized the importance of holding individuals accountable for exploiting the Medi-Cal program and undermining the health and trust of the community.

Statistics:

  • $20 million - estimated loss to Medi-Cal as a result of the scheme
  • 75% - percentage of DMFEA's funding received from the U.S. Department of Health and Human Services
  • $69,244,976 - grant award funding for DMFEA for Federal fiscal year (FY) 2025
  • 2014-2016 - timeline of the diversion scheme
  • 4 years - length of jail sentence for Abrons
  • 5 years - length of state prison sentence for Fleming
  • 5 years - length of local custody sentence for El-Nachef

Sources:

  • "California Attorney General Announces Sentencing of Healthcare Clinic Operator in Prescription Medication Diversion Scheme" (California Department of Justice, June 27, 2025)
  • California Department of Justice Press Release (June 27, 2025)
  • DMFEA Fact Sheet (2025)
  • U.S. Department of Health and Human Services Grant Award (2025)

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