The former co-owner of City of Angels Medical Center was arrested Friday for allegedly paying homeless people for unnecessary medical treatment in a scheme to bilk government health programs of millions of dollars.

Robert Bourseau was taken in to custody at his Los Angeles home by federal investigators as part of an ongoing probe into a massive fraud scheme that used thousands of homeless people from Skid Row as patients.

The downtown L.A. hospital, which was owned by Bourseau's Intercare Health Systems, was sold to Success Health Systems in Boca Raton, Fla. in December and now operates as Silver Lake Medical Center.

A federal grand jury on Thursday indicted Bourseau on charges of conspiracy to commit health care fraud, conspiracy to pay illegal kickbacks to a Skid Row recruiter, and 11 counts of paying kickbacks.

Also named in the indictment was Dante Nicholson, the hospital's former vice president. Nicholson, a Palmdale resident, will be arraigned next month, the U.S. attorney's office said in a statement.

Last month, Bourseau's partner, Dr. Rudra Sabaratnam, pleaded guilty to paying illegal kickbacks for patient referrals. He operated a clinic that recruited homeless people to receive unnecessary health services.

Sabaratnam's co-defendent, Estill Mitts, pleaded guilty in September 2008 to conspiracy to commit health care fraud, money laundering, and tax evasion. Both men are scheduled to be sentenced later this year.

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