Groceries, Gift Cards and Unneeded Artery Surgery: Surgeon and Chiropractor Charged in $135 Million Medicare Case

Published Oct. 23, 2026. Case statuses are current as of that date.

The offer sounded like help: free rides, groceries, household goods, gift cards, even someone to pay your utility bill. Federal prosecutors say that at two Los Angeles clinics, those perks were kickbacks to bring Medicare patients in for an invasive artery procedure many did not need. A cardiothoracic surgeon and his business partner, a chiropractor who allegedly posed as a medical doctor, were indicted in what the Justice Department calls a $135 million scheme. The case was announced Oct. 22, 2026 [1].

Important: Charges are allegations. Every defendant named below who has not been convicted is presumed innocent unless and until proven guilty in court.

How the scheme allegedly worked

According to the Justice Department's summary of the indictment [1]:

1. The perks. Medicare beneficiaries were allegedly offered free transportation, groceries, household goods, gift cards and utility bill payments to get care at the defendants' clinics.
2. The plan switch. At Malek's direction, prosecutors say, clinic employees convinced patients to leave their existing insurance plans and re-enroll in specific Medicare plans, to maximize what the clinics were paid for atherectomies.
3. The "diagnosis." Malek, a chiropractor, allegedly posed as a medical doctor, diagnosed patients with arterial disease and recommended atherectomies. An atherectomy is an invasive procedure in which a bladed catheter is used to clear plaque from arteries.
4. The procedures. Tabaie allegedly performed atherectomies on patients who did not have disease in their arteries. Prosecutors also say he repeated the procedure on patients he had treated unsuccessfully before. The release says some procedures caused patients "extreme pain and discomfort."
5. Hiding the volume. To hide how many procedures Tabaie was doing, the defendants allegedly billed some of them under the names of other providers who did not perform them.

The Justice Department says data analytics flagged the case: Tabaie was "an extreme outlier for billing atherectomy procedures in the United States." A chart in the release covers 2016 through 2023 [1].

The people charged and their status

Dr. Harold Tabaie, 78, of Anaheim, California, is a cardiothoracic surgeon. Hany Malek, 61, of Tarzana, California, is a chiropractor described as his business partner. Prosecutors say the two co-owned and operated West Regional Cardio Thoracic and Vascular Surgeons and Angelus Medical Clinic Multi Specialty Group, both based in Los Angeles. The release includes a photo of a clinic in Inglewood where it says the procedures were performed [1].

Each is charged with four counts of health care fraud.

Malek faces two more counts of bank fraud tied to the Paycheck Protection Program. According to the indictment, he diverted clinic revenue to a company he owned that paid clinic employees but did not earn revenue on its own. In 2021, prosecutors say, he applied for a PPP loan for that company. The application allegedly claimed a drop of more than 25% in gross receipts from 2019 to 2020 and said the money would cover payroll and other business costs. Prosecutors say he instead spent it on personal expenses, other business ventures, family credit card payments and the purchase of coins [1].

The FBI, HHS Office of Inspector General, IRS Criminal Investigation and the U.S. Marshals Service investigated. The Fraud Division's Health Care Fraud Section and the U.S. Attorney's Office for the Central District of California are prosecuting. The case is United States v. Harold Tabaie and Hany Malek, No. 2:26-cr-00668, in the U.S. District Court for the Central District of California, assigned to Judge John F. Walter, according to the Justice Department's victim page [2]. The release does not say whether either man has entered a plea [1].

The headline figure is $134 million in one part of the release and $135 million in another; we report both as given.

Red flags

• A clinic that offers groceries, gift cards, rides or bill payments in exchange for coming in. Medicare kickbacks are illegal, and "free" perks are a common lure.
• Pressure to change your Medicare plan so a particular clinic can treat you.
• A "doctor" whose credentials you can't confirm. Ask what kind of license your provider holds, and check it with your state's medical board.
• Repeat invasive procedures recommended quickly, especially when the first one didn't help.
• Your Medicare Summary Notice lists a provider you never saw or a procedure you didn't have.

What to do if you're targeted

1. Get a second opinion from a physician you choose before agreeing to any invasive procedure.
2. Read your Medicare Summary Notices or log in at Medicare.gov to review claims.
3. Report suspected Medicare fraud to HHS-OIG at 1-800-HHS-TIPS (1-800-447-8477) or by calling 1-800-MEDICARE.
4. Think you were a patient in this case? The Justice Department set up a victim page at justice.gov. The Fraud Division's Victim Assistance Unit can be reached at 1-888-549-3945 or victimassistance.fraud@usdoj.gov [1][2].
5. Age 60 or older? The DOJ Elder Justice Hotline, 1-833-372-8311, can help.

Case status (as of Oct. 23, 2026)

Defendant	Court	Status	Source
Dr. Harold Tabaie, 78, Anaheim, Calif.	U.S. District Court, C.D. Cal., No. 2:26-cr-00668	Indicted, 4 counts of health care fraud; presumed innocent	[1]
Hany Malek, 61, Tarzana, Calif.	U.S. District Court, C.D. Cal., No. 2:26-cr-00668	Indicted, 4 counts of health care fraud and 2 counts of bank fraud; presumed innocent	[1]

Those not convicted are presumed innocent. Statuses can change.

Sources

1. U.S. Department of Justice, Office of Public Affairs, "Los Angeles Health Care Fraud Takedown Results in Charges Against 15 Defendants, Including 6 Medical Professionals, Nearly $2 Billion in Loss," Oct. 22, 2026. https://www.justice.gov/opa/pr/los-angeles-health-care-fraud-takedown-results-charges-against-15-defendants-including-6
2. U.S. Department of Justice, Criminal Division Victim Notification, "United States v. Harold Tabaie and Hany Malek," accessed Oct. 23, 2026. https://www.justice.gov/criminal/criminal-vns/case/united-states-v-harold-tabaie-and-hany-malek

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