Boston (ECN) - FBI agents served up search warranta at three hospitals as part of an investigation into a Medicare fraud.

Owner and chief executive of the City of Angels Medical Center Dr. Rudra Sabaratnam, as well as Estill Mitts were both indicted by a federal grand jury last week.

They were indicted on 21 counts, including money laundering, tax evasion, and healthcare fraud.

The investigation was into a Medcare scam which involved homeless patients that were actually recruited.

The men were arrested on Wednesday morning as the FBI investigation continues.

The hospitals took part in a patient recruiting operation on skid row, which took homeless people from the streets, and took them into the hospital with fake medical conditions.

Other hospitals involved include Pacific Health Care Corp, Los Angeles Metropolitan Medical Center, Tustin Hospital and Medical Center, as well as others.