15 Face Charges in Alleged $1.8B California Health Care Fraud Schemes
WHO:
Los Angeles Times - California Attorney General Rob Bonta and First Assistant U.S. Attorney Bill Essayli publicly disputed who deserved credit for the fraud investigations.
Los Angeles Times - Prosecutors identified Dr. Harold Tabie, an Anaheim cardiothoracic surgeon, as a defendant accused of collecting more than $100 million in Medicare claims.
Los Angeles Times - Assistant U.S. Attorney General Colin McDonald described the alleged conduct as “exploitation” and “an assembly line of fraud.”
ABC7 Los Angeles - Federal agents arrested 61-year-old chiropractor Hany Malek in Tarzana; prosecutors allege he posed as a medical doctor.
ABC News - Federal prosecutors charged 15 people across multiple states in connection with alleged Medicare and insurance fraud schemes.
ABC News - Eight defendants, some of them physicians, were arrested by federal agents; most of the arrests took place in California.
ABC News - The alleged substance-abuse-treatment scheme involved two people in Los Angeles and one in Texas.
ABC News - A Los Angeles cardiothoracic surgeon and a chiropractor were accused in an alleged Medicare atherectomy scheme.
IJR - The 15 people charged included six medical professionals.
WHAT:
Los Angeles Times - Bonta said state investigators helped arrest Tabie and called the investigation a joint effort; he criticized Essayli for not identifying the state teams involved.
Los Angeles Times - Bonta announced separate fraud charges against more than 100 people accused of double-dipping in California’s In-Home Support Services program.
Los Angeles Times - Bonta said the alleged IHSS fraud was a small fraction of the program’s $30-billion budget.
ABC7 Los Angeles - Assistant U.S. Attorney Bill Essayli said patients were allegedly subjected to repeat artery procedures after being told an earlier procedure had not succeeded.
ABC News - The Justice Department said the alleged schemes collectively took in $2 billion.
IJR - The cases involved more than $1.8 billion in claims.
ABC News - The alleged schemes included billing private insurers for phony substance-abuse treatment, billing Medicare for unnecessary atherectomy procedures, and billing Medicare for hospice services for patients who were not terminally ill.
ABC News - Prosecutors alleged the substance-abuse scheme received more than $1.6 billion.
ABC News - Prosecutors alleged that the atherectomy case involved more than $135 million in Medicare billings.
ABC News - Three alleged hospice-fraud cases involved a combined $138 million in Medicare billings for patients who were not terminally ill.
IJR - The artery procedures allegedly injured patients.
WHERE:
ABC News - The alleged schemes involved multiple states; most arrests took place in California.
ABC News - The substance-abuse scheme allegedly involved patients moved from around the country to California.
ABC News - Five suspects were expected to appear in federal court in Los Angeles, two in Texas, and one in Illinois.
WHY:
ABC News - Prosecutors alleged that the suspects in the substance-abuse scheme enrolled patients in insurance policies for which they were ineligible to obtain the highest reimbursements for treatment.
HOW:
Los Angeles Times - Prosecutors alleged two Los Angeles defendants paid “body brokers” in Texas to recruit homeless people and participants in 12-step programs into sham sober-living homes, where they were allegedly enrolled in costly insurance policies and left in decrepit housing.
Los Angeles Times - The separate IHSS scheme allegedly involved caregivers collecting program payments while Medicaid simultaneously paid for the care recipient’s treatment in a hospital or nursing home.
ABC7 Los Angeles - Federal agents used flash bangs and scaled a hillside to reach a Tarzana mansion during Malek’s arrest.
ABC News - The substance-abuse suspects allegedly moved patients to California, enrolled them in ineligible insurance policies, and sought the highest treatment reimbursements.
ABC News - The surgeon and chiropractor allegedly falsely diagnosed patients with arterial disease and recommended atherectomies, procedures used to remove plaque from blood vessels.
ABC News - The alleged hospice schemes billed Medicare for services for patients who were not terminally ill.
(UPDATED October 23, 2026 05:06 UTC)
Federal prosecutors have charged 15 people across several states in alleged fraud schemes involving about $2 billion, with eight defendants arrested, most in California. The cases include alleged fake substance-abuse treatment, unnecessary artery procedures, and hospice care billed for patients who were not terminally ill. Prosecutors say the substance-abuse scheme brought in more than $1.6 billion by moving patients to California, enrolling them in insurance policies they weren’t eligible for, and seeking high reimbursements. Two Los Angeles defendants allegedly paid recruiters to bring homeless people and others into sham sober-living homes. In a separate case, Anaheim surgeon Harold Tabie and chiropractor Hany Malek are accused of a scheme involving more than $135 million in Medicare claims and repeat, unnecessary procedures. California Attorney General Rob Bonta and federal prosecutor Bill Essayli publicly disputed credit for the investigations.
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(UPDATED October 23, 2026 04:11 UTC)
Federal prosecutors have charged 15 people in multiple states in alleged Medicare and insurance fraud schemes involving billions of dollars. The Justice Department says the cases collectively took in $2 billion, while another accounting put claims above $1.8 billion. Eight defendants, including some physicians, were arrested, most in California; six of the people charged are medical professionals. The largest alleged scheme involved more than $1.6 billion in private insurance claims for phony substance-abuse treatment. Prosecutors say patients were brought to California from around the country, enrolled in insurance policies they were ineligible for, and billed at the highest reimbursement rates. In a separate case, a Los Angeles surgeon and chiropractor allegedly made false diagnoses and recommended unnecessary artery procedures, involving more than $135 million in Medicare billings and reportedly injuring patients. Three hospice cases allegedly billed $138 million for patients who were not terminally ill.