LOS ANGELES, CA – Federal agents arrested a Tarzana chiropractor and an Anaheim cardiothoracic surgeon on Thursday on a federal indictment that alleges they ran a $135 million Medicare fraud scheme built on medically unnecessary arterial procedures, authorities said.
Dr. Hany Malek, 61, of Tarzana, and Dr. Harold Tabaie, 78, of Anaheim, were taken into custody the morning of Oct. 22. The arrests were part of a district-wide health care fraud operation by the FBI, IRS Criminal Investigation and the U.S. Attorney’s Office for the Central District of California.
The indictment, filed in the case United States v. Tabaie, et al., charges the two men with a scheme centered on atherectomies, an invasive procedure in which a bladed catheter is used to clear plaque from an artery.
An arrest is not a conviction, and the allegations remain subject to the criminal court process.
Two clinics at the center of the case
According to the indictment, Malek and Tabaie co-owned and operated two Los Angeles-based clinics: West Regional Cardio Thoracic and Vascular Surgeons and Angelus Medical Clinic Multi Specialty Group. The procedures at the heart of the case were performed at those clinics, federal authorities said.
Prosecutors allege the two men used the clinics to bill Medicare, the federal health insurance program for older Americans, for atherectomies that patients did not need.
The indictment alleges the arrangement generated about $135 million in claims. Authorities have not said how many patients underwent the procedures across the two locations.
Alleged roles of the chiropractor and the surgeon
The indictment alleges that Malek routinely posed as a medical doctor. Prosecutors say he wore a white lab coat, diagnosed patients with arterial disease they did not have and recommended surgery.
Tabaie, according to the indictment, then performed the operations. That allegedly included repeat atherectomies on patients who had previously been treated without success.
Officials said the procedures caused permanent physical damage and ongoing pain for patients. The full extent of the injuries had not been confirmed.
Alleged kickbacks and plan switching
To keep patient volume high, prosecutors allege, Tabaie and Malek induced Medicare beneficiaries with illegal kickbacks. Those allegedly included free transportation, groceries, household goods, gift cards and utility bill payments.
The indictment further alleges that clinic employees, acting at Malek’s direction, convinced patients to leave their existing insurance plans. Patients were then allegedly steered into specific Medicare plans designed to maximize the clinics’ reimbursements.
Authorities said investigators identified the case through data analytics. Those analytics flagged Tabaie as an extreme national outlier in billing for atherectomy procedures.
Paycheck Protection Program charges against Malek
Malek also faces charges related to fraudulent Paycheck Protection Program loan applications submitted in 2021. Prosecutors allege he falsely claimed revenue reductions for a shell company that was used to divert clinic funds.
The indictment does not, by itself, establish any of those allegations. Both men are presumed innocent unless and until they are convicted or plead guilty.
Essayli and IRS agent comment at the arrest scene
Acting U.S. Attorney Bill Essayli spoke at Malek’s Tarzana home during the arrest. He said the two men were indicted on a $135 million fraud scheme in which surgeries were ordered and performed that were medically unnecessary, “which actually resulted in people being harmed.”
“This is the worst type of health care fraud because you have doctors who are supposed to be doing no harm,” Essayli said. He added that the patients were victims rather than co-conspirators.
On the patients’ condition, Essayli said, “A lot of them are suffering from pain, they had some permanent damage, so I don’t think they’ll ever be okay.”
Oleg Pobereyko, an assistant special agent in charge with IRS Criminal Investigation, said, “Healthcare is not a victimless crime, right? And the IRS CI will follow the money and expose the truth.”
Early-morning operation in Tarzana
According to initial reports, FBI agents arrived in Tarzana in the early morning and entered at least one house. Multiple law enforcement vehicles were in the neighborhood.
Federal authorities scheduled a multi-agency news conference for 9:30 a.m. Thursday in downtown Los Angeles to describe the wider operation. That sweep covers health care fraud cases across the Central District of California.
Part of a broader federal enforcement effort
The October operation follows the 2026 National Health Care Fraud Takedown. The U.S. Department of Justice announced that takedown June 23, reporting charges against 455 defendants, including 90 doctors and licensed medical professionals. The cases involved more than $6.5 billion in alleged false claims across 56 federal districts.
The Department of Health and Human Services Office of Inspector General’s summary of that takedown reports the same defendant and loss totals. It also lists $182 million in seized assets and participation by 50 state Medicaid Fraud Control Units. The national June takedown is separate from the Oct. 22 operation in the Central District.
Initial court appearances expected
Malek and Tabaie are expected to make initial appearances in federal court in downtown Los Angeles to address the charges in the indictment. Prosecutors have not announced trial dates.
Anyone with information about the case is asked to contact the FBI. The investigation remains active, and the charges against both men are allegations that have yet to be tested in court.
