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Homeless Used In Medical Scam

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Man recruits homeless to commit medical fraud…

A man accused of recruiting the homeless to pose as phony patients in order to claim millions in government health benefits, has pleaded guilty to charges of health fraud, money laundering and tax evasion.

Estill Mills, 64, admitted to running an assessment center called the 7th Street Christian Day Center in the run down area of Skid Row, Los Angeles.

homeless medical fraud city of angles1 Homeless Used In Medical Scam

At the center, homeless people were recruited and paid to undergo medical care at the City of Angels hospital. The hospital then charged millions of dollars to federally subsidized health care benefit programs for treatments and procedure that were not carried out.

Prosecutors also alleged that the hospital paid referral fees to Mitts using two shell companies.

The hospital was run by Mitt’s co-defendant, Dr. Rudra Sabaratnam.

Charges were filed against both after police spotted five patients being dumped on Skid Row in October 2006 and determined they were recruited for the scheme.

Estill faces up to 25 years in prison. He could also $600,000 and asked to pay more than $11 million in restitution.

Sabaratnam has pleaded guilty to charges that carry a maximum penalty of 10 years in federal prison, he has also been order to pay over $4.1 million in restitution to Medicare and Medi-Cal.

United States Attorney Thomas P. O’Brien said:

“This was a sophisticated scheme to defraud health care programs that are financed by taxpayers…
“These defendants stripped public health care programs of money that should have been used for those patients with legitimate needs and are well deserving of prosecution by the United States.”

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