Federal agents have arrested Robert Bourseau on charges that he participated in a scheme to recruit homeless people as patients to defraud Medicare and Medicaid when he was co-owner and chief financial officer at 150-bed City of Angels Medical Center in Los Angeles.
Bourseau, 74, was taken into custody at his Los Angeles home this morning and was scheduled to appear in court this afternoon. He was indicted under seal Jan. 29 along with Dante Nicholson, 51, a former City of Angels vice president, who will be summoned for arraignment in February, according to a news release from U.S. Attorney Thomas OBrien.
The sensational allegations first became public in August 2008 with the arrest of Rudra Sabaratnam, who formerly owned the for-profit hospital with Bourseau and was its chief executive officer. Sabaratnam pleaded guilty to the scam, as did Estill MittsSabaratnam pleaded guilty to the scam, as did Estill Mitts, whose purported health assessment center in the area known as Skid Row recruited the homeless patients in exchange for kickbacks disguised in sham consulting contracts.