CEO Arrested in Plan to Use Homeless in Medicare Scam

Scheme recruited LA's skid row denizens to bilk feds for unnecessary service fees
By Nick McMaster,  Newser Staff
Posted Aug 6, 2008 5:30 PM CDT
Residents ride on a bike down San Julian Street in the Skid Row area of downtown Los Angeles, Thursday, March 19, 2008.    (AP Photo/Tracy Gitnick)
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(Newser) – The CEO of a Los Angeles hospital was arrested today for defrauding Medicare by using the city’s homeless to fill empty beds, the AP reports. The FBI says Rudra Sabaratnam, of City of Angels hospital, recruited the homeless in a scheme to charge for unnecessary health services and keep the funds. The FBI also arrested the operator of a skid-row shelter.