Man Accused in Medi-Cal Scam Returns to U.S.

A Valencia executive charged with defrauding Medi-Cal out of $7.2 million through phony billings has emerged from hiding in the Philippines and surrendered, the California attorney general’s office said Tuesday.

Roy Pacia, president and owner of Bruce Pharmacal Inc., masterminded one of the largest phony-billing cases in Medi-Cal history, said Dennis Cowan, an investigator for the attorney general.

Pacia, a naturalized U.S. citizen, fled to his native Philippines in December just before warrants for his arrest were issued, Cowan said.

Pacia, 51, told investigators that he had become a target for extortion or kidnaping in the Philippines and feared for his safety, Cowan said. There is no extradition treaty with the Philippines, Cowan said.

“Apparently he had a change of heart after he became the target of possible death threats and kidnaping there,” said Deputy Atty. Gen. Henry Torres Jr. “He was pretty much on the run the whole time he was in the Philippines. Apparently he made a decision that wasn’t the lifestyle he wanted.”

But Pacia’s attorney, Dennis M. Warren of Sacramento, said it was a “courageous personal decision to come back, face the charges and put all this behind him.”

After negotiations through his attorney, Pacia agreed to return to the United States and surrender to federal authorities in Hawaii on Thursday. He was flown to Los Angeles and arraigned Friday on charges of grand theft and filing false medical claims. He is being held on $10-million bail, Cowan said.

Pacia was one of five Bruce Pharmacal employees charged in December. Eliseo Sur of Granada Hills pleaded guilty to one count of conspiracy to submit false claims and received a suspended sentence and must pay $36,000 restitution. Macario Tiu Sr. pleaded guilty to one count of receiving unlawful remuneration for Medi-Cal stickers and has not been sentenced, Torres said.

Elisa Cabuntala of Los Angeles and Carol Dunbar of Newhall both face charges of grand theft and conspiracy to submit false claims, Torres said.

From 1987 to 1990, the firm submitted groundless claims for supplies supposedly delivered to elderly and disabled Medi-Cal beneficiaries, Cowan said. The company submitted claims without the beneficiaries’ knowledge for supplies that were never provided, he said.

Pacia could face a maximum of 10 years in prison and a $10,000 fine, said Torres, who said he would not accept a plea bargain “unless there is both substantial restitution and jail time.”