Facilities in Los Angeles and Tustin allegedly churned thousands of indigents through their sites and billed Medicare and Medi-Cal for costly and unjustified medical procedures.

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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