Mr. Nicholson admitted his involvement in the scheme that paid recruiters who referred homeless people with government medical benefits to the hospital for in-hospital stays. The hospital tried to cover the kickbacks by creating fake consulting contracts, according to the report.
Mr. Nicholson agreed to pay more than $4.1 million in restitution to Medicare and Medi-Cal and faces a sentence of a maximum of 10 years in prison. He will be sentenced on Aug. 17.
In addition to Mr. Nicholson, Rudra Sabaratnum, the former CEO of City of Angels, and Estill Mitts, who operated the center that recruited homeless people of services, are also scheduled to appear for sentencing on Aug. 17. Robert Bourseau, the former co-owner and executive of City of Angels, was indicted in January on these charges and remains in custody without bond.
This case is part of an on-going investigation by multiple agencies, according to the report.
Read the Los Angeles Times’ report on the City of Angels kickback scheme.
