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Man Admits To Medicare, Medical Homeless Fraud

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Sep 18, 2008 7:58 pm US/Pacific

Man Admits To Medicare, Medical Homeless Fraud

LOS ANGELES (AP) ―

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A Los Angeles man has pleaded guilty to recruiting and paying homeless people to undergo unneeded medical care in a scheme to defraud Medicare and Medi-Cal.

Federal prosecutors say Estill Mitts entered his pleas Thursday in U.S. District Court.

Mitts ran an assessment center near Skid Row where homeless people were paid to go to the City of Angels hospital. The hospital charged millions of dollars to the federally subsidized health care benefit programs. It also allegedly paid referral fees to Mitts through two shell companies.

The hospital was run by his co-defendant, Dr. Rudra Sabaratnam, whose trial begins Sept. 30.

Mitts is set to be sentenced Dec. 15 and faces up to 25 years in federal prison.