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3 Southern California Hospitals Accused of Fraud

LOS ANGELES — On a Sunday afternoon two years ago, five homeless people being dropped off on Los Angeles’ skid row by an ambulance caught the attention of police officers.

The officers videotaped what they thought was a case of hospitals dumping patients in a section of the city where few would notice or care.

But as investigators began to unravel the incident, they say they found something far different: a massive scheme to defraud taxpayer-funded healthcare programs of millions of dollars by recruiting homeless patients for unnecessary medical services.

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