%20New%20Logo_4.jpg){kind=small}
LA doctor, chiropractor indicted in $135M fraud scheme
A Los Angeles cardiothoracic surgeon and a chiropractor have been indicted in an alleged $135 million Medicare fraud scheme involving medically unnecessary artery procedures, federal authorities announced Thursday.
Dr. Harold Tabaie, 78, of Anaheim, and Hany Malek, 61, of Tarzana, are accused of billing Medicare for unnecessary medical procedures that investigators say exposed patients to avoidable pain and potential harm. The charges were announced October 22, 2026, as part of a broader federal crackdown on alleged health care fraud across Southern California.
According to the U.S. Department of Justice, the alleged scheme involved two Los Angeles-area clinics the men co-owned and operated: West Regional Cardio Thoracic and Vascular Surgeons and Angelus Medical Clinic Multi Specialty Group.
Patients Allegedly Received Unnecessary Artery Procedures
Federal prosecutors allege that Tabaie and Malek billed Medicare for atherectomies, invasive procedures that use a specialized catheter to remove plaque from arteries.
According to the indictment, Malek allegedly posed as a medical doctor, diagnosed patients with arterial disease and recommended that they undergo the procedures. Tabaie allegedly performed the surgeries on patients who did not have arterial disease requiring treatment.
Investigators further allege that Tabaie performed repeat procedures on some patients after earlier treatments had been unsuccessful. Some patients reportedly experienced extreme pain and discomfort following the procedures.
Authorities say the defendants allegedly concealed the unusually high number of surgeries by submitting claims under the names of other medical providers who had not actually performed them.
Alleged Kickbacks Used to Attract Medicare Patients
The indictment also alleges that the clinics offered Medicare beneficiaries incentives to encourage them to receive services, including free transportation, groceries, household goods, gift cards and payments toward utility bills.
Prosecutors further allege that Malek directed clinic employees to persuade patients to leave their existing insurance plans and enroll in specific Medicare plans that would provide higher reimbursements for the procedures.
The alleged scheme resulted in approximately $135 million in Medicare billing, according to federal authorities.
Investigators identified the case through data analysis that flagged Tabaie as an extreme outlier in the number of atherectomy procedures billed to Medicare between 2016 and 2023.
Part of a Larger Federal Health Care Fraud Investigation
The case was announced as part of a broader federal enforcement action involving 15 defendants, including six medical professionals, accused of participating in separate health care fraud schemes. The Justice Department said the cases collectively involved more than $1.8 billion in alleged fraudulent claims to government and private health care programs.
The broader investigation included alleged fraud involving unnecessary medical procedures, substance abuse treatment programs, hospice services and prescription claims.
Federal authorities say the cases reflect ongoing efforts to identify suspicious billing patterns, protect patients and prevent the misuse of taxpayer-funded health care programs.
What Happens Next?
Tabaie and Malek face federal criminal charges related to the alleged scheme. The indictment also includes allegations against Malek involving fraudulent applications for Paycheck Protection Program loans.
The FBI and the Department of Health and Human Services Office of Inspector General are investigating the case.
An indictment is a formal accusation, not a finding of guilt. Both defendants are presumed innocent unless proven guilty beyond a reasonable doubt in court.
Source: FOX 11 Los Angeles
Comments