Homeless allegedly used in insurance scam

LOS ANGELES, Aug. 10 (UPI) -- A health official in Los Angeles allegedly used homeless individuals as part of a scheme to steal millions of dollars from insurance programs, authorities say.

Following a raid of three Los Angeles private for-profit hospitals, authorities charged City of Angels Medical Center owner Dr. Rudra Sabaratnam with committing healthcare fraud and conspiring to accept kickbacks for medical referrals, The New York Times said Sunday.

Also charged following Wednesday's raid was Estill Mitts, who runs the 7th Street Christian Day Center.

Mitts, who is facing the same charges as Sabaratnam, allegedly recruited homeless people from his Skid Row church to take part in the insurance scheme.

The two men are named in a 21-count grand jury indictment that also charges Mitts with tax evasion and money laundering.

The alleged scheme involved using the homeless individuals to obtain insurance payments despite the fact such patients routinely received incorrect medical services or none at all, the Times reported.

Two other health officials have been implicated as part of the case and city attorneys expect additional arrests in the future.