Federal prosecutors allege two Los Angeles-area medical professionals billed Medicare for unnecessary arterial surgeries, exposed patients to potentially harmful procedures and concealed their unusually high billing volume.
LOS ANGELES, CA – October 23, 2026 (STL.News) A California cardiothoracic surgeon and a chiropractor have been federally indicted in an alleged $135 million Medicare fraud scheme involving medically unnecessary arterial procedures, with prosecutors accusing the defendants of performing invasive surgeries on patients who did not need them and manipulating billing records to conceal the operation.
The U.S. Department of Justice announced the charges Thursday, October 22, identifying the defendants as Dr. Harold Tabaie, 78, of Anaheim, California, and his business partner, Hany Malek, 61, of Tarzana, California.
Tabaie, a cardiothoracic surgeon, and Malek, a chiropractor, allegedly operated two Los Angeles-area medical clinics where they directed Medicare beneficiaries toward unnecessary procedures to generate substantial insurance reimbursements.
Federal authorities allege that some patients underwent procedures despite having no arterial disease requiring the treatment. Others allegedly received repeat procedures after earlier treatments were unsuccessful.
Some patients experienced extreme pain and discomfort following the procedures, according to federal prosecutors.
The allegations raise serious concerns about patient safety, medical ethics, Medicare oversight, and the potential exploitation of elderly Americans who rely on federally funded health insurance.
Both defendants face four health care fraud counts. Malek also faces two counts of bank fraud related to a separate alleged misuse of federal pandemic relief funds.
The charges are allegations, and both defendants are presumed innocent unless the government proves guilt beyond a reasonable doubt.
Federal Prosecutors Describe Unnecessary Arterial Surgeries
At the center of the indictment are medical procedures known as atherectomies.
An atherectomy is an invasive procedure that removes plaque from arteries. Depending on the patient’s condition, physicians may use specialized catheters equipped with cutting or other plaque-removal mechanisms to restore blood flow through narrowed or blocked arteries.
Such procedures can be medically appropriate for certain patients suffering from peripheral artery disease or other vascular conditions.
However, they carry risks.
Potential complications can include bleeding, injury to blood vessels, blood clots, and other problems associated with invasive vascular interventions.
Federal prosecutors allege that Tabaie performed atherectomies on patients who did not have arterial disease requiring those procedures.
According to the Justice Department, Malek allegedly presented himself as a medical doctor, diagnosed patients with arterial disease and recommended that they undergo atherectomies.
Tabaie then allegedly performed the procedures.
Prosecutors further contend that Tabaie performed additional atherectomies on patients whose earlier procedures had been unsuccessful.
The indictment describes a system in which medical diagnoses, treatment recommendations and surgical procedures allegedly became mechanisms for generating Medicare reimbursements rather than responding to legitimate patient needs.
Importantly, the government has not established that every procedure performed at the clinics was unnecessary. The indictment identifies alleged fraudulent practices that prosecutors must prove in court.
Two Los Angeles Clinics Identified
The alleged scheme involved two medical businesses that prosecutors say the defendants co-owned and operated:
- West Regional Cardio Thoracic and Vascular Surgeons
- Angelus Medical Clinic Multi Specialty Group
According to the Justice Department, patients were evaluated through the defendants’ medical operations before being directed toward arterial procedures.
Federal investigators allege that Malek played a significant role in diagnosing patients and recommending treatment despite being a chiropractor rather than a physician authorized to practice medicine in the manner alleged.
The distinction is central to the government’s case.
Chiropractors are licensed health care professionals, but their professional scope of practice differs from that of medical doctors and vascular surgeons.
The indictment alleges that Malek misrepresented his professional role when recommending medical procedures.
Prosecutors contend that the arrangement allowed the defendants to steer patients toward expensive vascular treatments that generated substantial Medicare claims.
The government’s allegations also raise questions about whether patients received accurate information about their diagnoses, the need for surgery, and the qualifications of the professionals recommending treatment.
Those questions could become significant as the criminal case proceeds.
Investigators Say Billing Records Concealed Procedures
Federal prosecutors allege that the defendants attempted to disguise the unusually high number of atherectomies performed by Tabaie.
According to the Justice Department, claims were submitted under the names of other medical providers who had not actually performed the procedures.
The alleged practice could make it harder for Medicare administrators and investigators to identify the physician responsible for a large volume of billed surgeries.
Accurate provider identification is essential to Medicare billing.
Claims generally must reflect the services actually provided and identify the appropriate billing and rendering providers under applicable program rules.
False identification can interfere with oversight efforts designed to detect unusually high billing, medically unnecessary procedures, and other irregularities.
In this case, investigators say the alleged billing practices were part of an effort to conceal the volume of procedures attributed to Tabaie.
The Justice Department also disclosed that data analytics played an important role in identifying the case.
According to federal officials, an analysis of Medicare billing records showed that Tabaie was an extreme outlier in the number of atherectomy procedures billed nationally.
The government published a chart comparing atherectomy billing patterns from 2016 through 2023.
That finding helped investigators identify activity warranting closer examination.
An unusually high billing volume does not, by itself, establish criminal wrongdoing. However, significant deviations from normal billing patterns can provide investigators with evidence supporting additional scrutiny.
Patients Allegedly Offered Financial Incentives
The indictment also alleges that Tabaie and Malek offered Medicare beneficiaries various financial and material benefits to encourage them to receive services at the clinics.
According to prosecutors, those incentives included free transportation, groceries, household goods, gift cards and payments toward utility bills.
Federal authorities characterize the alleged benefits as illegal kickbacks intended to induce patients to use the clinics’ services.
Federal health care laws generally prohibit offering or receiving remuneration to induce referrals or the purchase of services reimbursable by federal health care programs, subject to applicable statutory exceptions and regulatory safe harbors.
The legal issue is not whether transportation assistance or other patient support is inherently improper. Rather, prosecutors allege that the benefits were used unlawfully to influence patients’ decisions to obtain medical services.
The distinction matters especially when dealing with older adults or financially vulnerable Medicare beneficiaries.
Patients facing transportation difficulties, high household expenses, or limited income may be especially receptive to offers of assistance.
Prosecutors allege the defendants exploited these incentives to attract patients into a system that generated substantial Medicare reimbursements.
Patients Allegedly Encouraged to Change Medicare Plans
Federal investigators also identified an alleged insurance enrollment component.
According to the indictment, clinic employees, acting at Malek’s direction, persuaded patients to leave their existing insurance plans and enroll in specific Medicare plans.
The alleged objective was to maximize reimbursement payments for atherectomy procedures.
Medicare beneficiaries have different coverage options, including Original Medicare and privately administered Medicare Advantage plans.
Plan selection can affect provider networks, out-of-pocket expenses, authorization requirements, and payment arrangements.
Federal prosecutors allege that the defendants sought to influence those decisions for financial benefit.
The allegations suggest the purported scheme extended beyond individual surgical procedures to patient recruitment, insurance enrollment, and reimbursement management.
If proven, the conduct would demonstrate how multiple parts of the health care system could be manipulated to generate improper payments.
Chiropractor Also Accused of Pandemic Loan Fraud
In addition to the Medicare allegations, Malek faces two bank fraud counts involving Paycheck Protection Program loans.
The PPP was established during the COVID-19 pandemic to help qualifying businesses maintain payroll and cover eligible expenses during the economic disruption.
According to the indictment, Malek diverted revenue from the medical clinics into a separate company he owned.
Prosecutors say the company paid clinic employees but did not generate revenue on its own.
In 2021, Malek allegedly submitted a PPP loan application for that business containing false financial information.
The application allegedly claimed the company’s gross receipts fell by more than 25% between 2019 and 2020.
Federal prosecutors contend that the representation was false.
Although the loan application indicated the money would be used for qualifying business expenses, investigators allege Malek directed the proceeds toward personal expenses and other uses.
Those alleged expenditures included family credit card payments, other business ventures, and coin purchases.
The bank fraud allegations are separate from the Medicare fraud counts, although both arise from the defendants’ alleged financial activities.
Medicare Data Analytics Helped Uncover the Case
One of the prosecution’s most significant aspects is the Justice Department’s emphasis on data-driven fraud detection.
Federal investigators increasingly use billing records, statistical comparisons, and other analytical tools to identify potential fraud involving government health care programs.
Medicare processes enormous volumes of claims across numerous medical specialties and geographic regions.
Patterns involving unusually frequent procedures, abnormal reimbursement amounts, or concentrations of particular services can prompt further investigation.
In the Tabaie and Malek case, prosecutors say the volume of atherectomies associated with Tabaie stood out when compared with other providers nationally.
The Department of Justice specifically identified data analytics as the method that brought the alleged conduct to investigators’ attention.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division emphasized the government’s use of analytical tools to identify suspected fraud and patient abuse.
The case illustrates the potential importance of examining claims data alongside medical records, provider information, and other investigative evidence.
However, statistical anomalies alone cannot determine whether a particular surgery was medically necessary. Such determinations require consideration of individual patient circumstances and clinical evidence.
Part of Larger Los Angeles Health Care Fraud Crackdown
The indictment was announced as part of a broader federal enforcement operation involving 15 defendants, including six medical professionals.
The Justice Department described approximately $2 billion in alleged fraudulent health care claims involving government and private insurance programs.
The federal announcement included multiple separate cases involving substance abuse treatment facilities, hospice providers, genetic testing, prescription drug distribution, and other alleged schemes.
Among the largest cases was an alleged substance abuse treatment fraud operation involving more than $1.6 billion in insurance billings.
Federal prosecutors allege that operators recruited vulnerable individuals from across the country and directed them toward purported addiction treatment facilities where services were nonexistent, medically unnecessary or improperly billed.
Other cases involved more than $138 million in alleged fraudulent Medicare billing associated with hospice operations.
Investigators say some patients enrolled in those hospice programs were not terminally ill.
The broader enforcement announcement also included allegations involving fraudulent genetic testing orders and a separate Medi-Cal prescription drug billing scheme.
Although the cases were announced together, they involve different defendants, allegations, and legal proceedings.
There is no indication in the cited Justice Department announcements that Tabaie and Malek participated in the other schemes.
Federal Agencies Investigating
The investigation involving Tabaie and Malek includes several federal law enforcement agencies.
They are the Federal Bureau of Investigation, IRS Criminal Investigation, the Department of Health and Human Services Office of Inspector General, and the U.S. Marshals Service.
Assistant U.S. Attorney David Y. Pi of the Major Fraud Section and Justice Department Trial Attorney Kelly R. Churnet of the Fraud Division are prosecuting the case.
The matter is pending in the U.S. District Court for the Central District of California.
The federal case number is 2:26-cr-00668, and U.S. District Judge John F. Walter has assigned the matter.
The Justice Department has established a dedicated case information page for individuals who believe they may have been affected.
Patient Safety Remains a Central Concern
While the alleged financial magnitude of the scheme is substantial, the accusations concerning unnecessary invasive procedures distinguish this prosecution from cases involving fraudulent paperwork alone.
The government alleges that real patients underwent medical interventions they did not need.
Some allegedly experienced significant pain and discomfort.
Unnecessary invasive procedures expose patients to medical risks without the clinical benefits to justify them.
For Medicare beneficiaries, many of whom are older adults or individuals with qualifying disabilities, those risks may be particularly concerning.
The indictment also raises broader questions about how patients can evaluate recommendations for complex procedures when they rely on medical professionals for accurate diagnoses and treatment guidance.
Patients ordinarily depend on physicians and other licensed professionals to explain their medical conditions, discuss available treatments, and disclose relevant risks.
The criminal allegations in this case concern an alleged breakdown of that trust.
The federal judicial process will ultimately determine whether the defendants committed the charged offenses.
Information for Potential Victims
The Department of Justice is encouraging individuals who believe they may have been affected by the alleged scheme to consult its official victim notification resources.
The department’s Victim Assistance Unit can be reached at 888-549-3945 or by email at [email protected].
Potential victims may also obtain information concerning victim impact statements, court proceedings, and applicable rights under the federal Crime Victims’ Rights Act.
The Justice Department maintains a dedicated page on its official website for the case, United States v. Harold Tabaie and Hany Malek.
Individuals who received treatment at the clinics and have questions about their medical care may also wish to consult an independent, appropriately licensed physician.
What Happens Next?
The indictment begins a federal criminal prosecution in which prosecutors must establish the charged offenses beyond a reasonable doubt.
The defendants will have opportunities to challenge the government’s evidence, contest the allegations, and present defenses through the judicial process.
Important developments could include additional court filings, pretrial motions, hearings, potential plea negotiations, or a criminal trial.
The Justice Department’s October 22 announcement does not establish that either defendant has been convicted.
For now, the case represents a significant federal prosecution involving allegations of improper medical treatment, fraudulent insurance claims, concealed billing practices, and financial exploitation of federal health care programs.
The alleged $135 million scheme also shows how investigators use nationwide Medicare billing comparisons to identify suspected misconduct.
For patients, the central concern remains the government’s allegation that invasive arterial procedures were performed without medical necessity.
For taxpayers, the case highlights the potential financial exposure of federal health care programs when providers allegedly manipulate treatment decisions and reimbursement systems.
As the prosecution moves forward, the court will determine whether the evidence supports the government’s allegations.
All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Sources: U.S. Department of Justice, Office of Public Affairs, October 22, 2026; U.S. Attorney’s Office for the Central District of California, October 22, 2026; Department of Justice Victim Notification System, United States v. Harold Tabaie and Hany Malek, Case No. 2:26-cr-00668.
