Medicare Scam Involving Homeless, Hospitals Leads To Arrests

August 7, 2008

The Federal Bureau of Investigation (FBI) has arrested two people involved in a Medicare scam carried out at the City of Angels Medical Center in Los Angeles.<br /> ...Washington (ChattahBox) – The Federal Bureau of Investigation (FBI) has arrested two people involved in a Medicare scam carried out at the City of Angels Medical Center in Los Angeles.

A raid was carried out by federal investigators on Wednesday morning at three medical centers who were all reportedly involved.

The arrests came after the raids, as the two arrested include the owner and chief executive of the City of Angels Hospital Ruda Sabaratnam as welll as an operator of a homless center in Los Angeles on Skid Row, Estill Mitts.

The two have been charged with conspiracy, as they reportedly recruited homeless people to come into the hospital over the past four years.

They would pay them around $30 to come into the hospital, and were then given unnecessary medical services.

Hospitals would then get paid from Medicare as well as Medi-Cal.

The two have been indicted on 21 counts in total, as Sabaratnam faces up to 50 years in federal prison, while Mitts faces up to 140 years.

Those facilities involved in the raid include City of Angels Medical Center, Los Angeles Metropolitan Medical Center, and Tustin Hospital and Medical Center.


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