Dr. Rudra Sabaratnam, who ran City of Angels Medical Center, faces up to 10 years in federal prison after pleading guilty to paying a recruiter nearly $500,000 to find Skid Row homeless people with Medi-Cal or Medicare cards and transport them to the hospital.

In his plea agreement, which remains under seal, Sabaratnam also agreed to pay more than $4.1 million in restitution to Medicare and Medi-Cal.

Sabaratnam, 64, is scheduled to be sentenced June 8 on two counts of illegal patient referrals.

Messages left with City of Angels and Sabaratnam's attorney were not immediately returned Friday.

U.S. Attorney Thomas P. O'Brien said the doctor masterminded a sophisticated scheme to cheat the government out of millions of dollars from about August 2004 to October 2007.

The investigation was sparked in 2006 as Los Angeles police looked into reports that hospitals were dumping homeless patients on Skid Row streets.