Tuesday, March 24, 2009

Second Executive Pleads Guilty In California "Skid Row" Healthcare Fraud Case

Dante Nicholson, 51, of Palmdale, California and the former Senior Vice President of the City of Angels Medical Center, pleaded guilty last Wednesday to a scheme whereby he and others paid an agent to recruit homeless people to come to the hospital for unnecessary medical procedures fraudulently charged to Medicare and Medi-Cal. Dr. Rudra Sabaratnam, 64, of the former CEO of the hospital, previously pleaded guilty in this case and was ordered to pay a $4.1 million fine. The fraud occurred between August 2004 and October 2007, according to prosecutors. The recruiter, Estill Mitts, 64, was arrested with Dr. Sabaratnam last August. He is alleged to have received more than $500,000 from the hospital as part of the scheme. Nicholson faces up to 10 years in prison and was also ordered to pay a $4.1 million fine.

Read FraudTalk's original post on this story here.

Read the story here and here.

Read the DOJ's announcement here.

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