LA doctor and chiropractor indicted in $135M unnecessary surgery fraud scheme
LA doctor, chiropractor indicted in $135M fraud scheme
Federal authorities have arrested an LA cardiothoracic surgeon and a chiropractor for allegedly running a $135 million Medicare fraud scheme. Officials say Dr. Hany Malek and his business partner Dr. Harold Tabaie lured patients with illegal kickbacksâlike free groceries and gift cardsâto perform dangerous, unnecessary leg surgeries that left victims in permanent pain.
LOS ANGELES - A major federal crackdown on healthcare fraud unfolded in Tarzana on Thursday, resulting in the arrests of chiropractor Dr. Hany Malek and his business partner, cardiothoracic surgeon Dr. Harold Tabaie, who are accused of operating a $135 million Medicare fraud scheme.
Officials report that the duo co-owned two Los Angeles-based clinics where they subjected patients to medically unnecessary, invasive arterial surgeries to generate massive insurance payouts.
The arrests formed part of a coordinated district-wide operation involving the FBI, IRS Criminal Investigation, and the U.S. Attorney's Office targeting widespread healthcare fraud.
What we know:
A federal indictment charges Dr. Harold Tabaie, 78, of Anaheim, and Dr. Hany Malek, 61, of Tarzana with running a $135 million scheme centered on performing unnecessary atherectomies—an invasive procedure using a bladed catheter to clear arterial plaque.
The procedures were conducted at two clinics co-owned and operated by the pair: West Regional Cardio Thoracic and Vascular Surgeons and Angelus Medical Clinic Multi Specialty Group.
Malek allegedly routinely posed as a medical doctor, wearing a white lab coat while diagnosing patients with non-existent arterial disease and recommending surgery. Tabaie then allegedly performed the invasive operations, including repeat atherectomies on patients previously treated unsuccessfully, causing permanent physical damage and ongoing pain.
Chiropractor Dr. Haney Malek / U.S. Attorney's Office
To maintain their patient volume, officials said Tabaie and Malek lured Medicare beneficiaries by offering illegal kickbacks, including free transportation, groceries, household goods, gift cards, and utility bill payments.
Clinic employees, acting at Malek's direction, allegedly convinced patients to disenroll from existing insurance plans and reenroll in specific Medicare plans designed to maximize clinic reimbursements.
Law enforcement identified the case using data analytics, which flagged Tabaie as an extreme national outlier for billing atherectomy procedures.
Additionally, Malek faces charges for submitting fraudulent Paycheck Protection Program (PPP) loan applications in 2021 by falsely claiming revenue reductions for a shell company used to divert clinic funds, officials said.
What we don't know:
Authorities have not disclosed the total number of patients subjected to unnecessary atherectomies across both clinic locations.
The full extent of physical injuries suffered by all affected victims remains unconfirmed as health officials evaluate impacted patients.
What they're saying:
U.S. Attorney Bill Essayli highlighted the severe human impact of the fraudulent operations during the arrest at Malek's home, emphasizing that the targeted patients were victims rather than co-conspirators.
"This gentleman, along with a co-defendant, were indicted on a hundred and thirty five million dollar fraud scheme where they were ordering surgeries and performing surgeries that were medically unnecessary, which actually resulted in people being harmed," Essayli said.
He noted that the perpetrators placed personal greed ahead of patient safety, adding, "This is the worst type of health care fraud because you have doctors who are supposed to be doing no harm. They are putting their financial interest again over the interest of their patients to make money so they can live at nice mansions like this."
Tarzana home where Dr. Haney Malek was arrested by federal authorities on Thursday, Oct. 22, 2026. / FOX 11
Addressing the victims' ongoing struggles, Essayli remarked, "A lot of them are suffering from pain, they had some permanent damage, so I don't think they'll ever be okay."
IRS Criminal Investigation Assistant Special Agent in Charge Oleg Pobereyko underscored the financial tracking that exposed the network. "Health care is not a victimless crime, right? And the IRS CI will follow the money and expose the truth," Pobereyko said.
What's next:
Malek and Tabaie will face initial court appearances in federal district court to address the charges outlined in the indictment.
Federal authorities have scheduled a multi-agency press conference in downtown LA at 9:30 a.m. Thursday to outline the broader scope of the district-wide healthcare fraud sweep, which encompasses billions of dollars in fraudulent activity.
The Source: This report is based on direct on-camera statements from U.S. Attorney Bill Essayli and IRS Criminal Investigation Assistant Special Agent in Charge Oleg Pobereyko at the scene of the arrestâwith official court records from the U.S. Attorney's Office indictment in "United States v. Tabaie, et al." Details regarding the mechanics of the atherectomy scheme, clinic operations, patient kickbacks, and data analytics tracking originated directly from federal charging documents and official law enforcement disclosures. All imagery, including the photo of Dr. Hany Malek, was provided courtesy of the U.S. Attorney's Office.