Federal authorities charged 15 people in Southern California after predawn raids targeting alleged healthcare fraud schemes totaling more than $1.8 billion. The defendants include six medical professionals accused of unnecessary procedures, sham substance abuse treatment, hospice fraud, prescription fraud and illegal kickbacks. Investigators said the cases involved claims submitted to government and private insurers. Officials said data analytics and coordinated enforcement helped identify several of the alleged schemes.
| 1) | Federal sweep targets alleged healthcare fraud |
| 2) | Surgeon and chiropractor face atherectomy charges |
| 3) | Father and son accused in rehab billing scheme |
| 4) | Additional hospice and prescription cases |
| 5) | Officials outline enforcement strategy |
Federal sweep targets alleged healthcare fraud
The charges were announced after federal authorities conducted predawn raids across Southern California on Thursday, October 22, 2026. Fifteen people were charged in cases involving alleged fraudulent claims to Medicare, Medi-Cal and private health insurance programs. Six of the defendants are medical professionals, according to the Justice Department.
The alleged conduct covered multiple parts of the healthcare system, including substance abuse treatment, cardiovascular procedures, hospice care, prescription drugs and genetic testing. Authorities said the cases were developed through investigations and, in at least one instance, analysis of billing data that identified unusual patterns.
Surgeon and chiropractor face atherectomy charges
Harold Tabaie, 78, of Anaheim, a cardiothoracic surgeon, and Hany Malek, 61, of Tarzana, a chiropractor, were charged in an alleged $135 million scheme involving unnecessary atherectomies. The procedures use a bladed catheter to remove plaque from arteries.
Prosecutors allege that Malek presented himself as a medical doctor, diagnosed patients with arterial disease and recommended procedures even when patients did not have the condition. Tabaie allegedly performed the surgeries, sometimes repeating procedures after earlier operations had failed. Authorities said some patients experienced extreme pain and discomfort.
Malek also faces allegations that he submitted fraudulent Paycheck Protection Program loan applications in 2021. Investigators say he falsely reported a 25% decline in business revenue and used the resulting funds for personal expenses, family credit cards, other ventures and rare coins.
Father and son accused in rehab billing scheme
Nathan Young, 39, and his father, David Young, 71, were charged in an alleged $1.6 billion substance abuse treatment fraud scheme. Authorities say the pair operated dozens of Los Angeles-area rehabilitation centers and recruited people with drug addictions from across the country.
Prosecutors allege that Honey Phipps, 42, and Cody Phipps, 36, both of Greenville, Texas, acted as body brokers. Body brokerage involves receiving kickbacks for directing insured patients to particular treatment facilities. Investigators said patients were repeatedly moved through the facilities so insurance companies could be billed again, despite a lack of genuine treatment.
The allegations also include using sedatives to prevent patients from leaving, offering drugs to keep them in the facilities, restricting communication with relatives and blocking access to personal belongings. Officials said staff were instructed to keep patients enrolled so the facilities could continue submitting claims.
Additional hospice and prescription cases
The enforcement action included a case involving more than $140 million in alleged fraud tied to hospice care. Defendants were accused of falsely certifying patients as terminally ill even though they were not eligible for hospice services.
Christina Mareik, 61, of Whittier, was charged in a separate prescription fraud case. Authorities allege that she helped submit thousands of false prescriptions for generic drugs with high reimbursement rates to Medi-Cal, California’s Medicaid program.
Hassan Badday, 48, of Los Angeles, and Robby Ayoub, 52, of Huntington Beach, were charged with allegedly accepting illegal kickbacks from a Houston laboratory marketer. In exchange, prosecutors say, the doctors ordered unnecessary genetic tests for Medicare patients.
Officials outline enforcement strategy
Federal officials said the investigation demonstrates how healthcare fraud can affect patients as well as public and private insurance systems. Assistant Attorney General Colin McDonald said the cases included the largest sober home fraud scheme prosecuted by the department and a separate investigation into unnecessary invasive procedures identified through data analytics.
“Our message is simple: if you steal health care dollars from the American taxpayer or abuse your position to harm patients, we are coming for you, and the data will lead us to you.”
First Assistant United States Attorney Bill Essayli said the alleged conduct was particularly serious when it involved healthcare professionals. The defendants have been charged, and the allegations will be tested in court. Charges are not findings of guilt.
| Number | Key Point |
|---|---|
| 1 | Fifteen people were charged in alleged Southern California healthcare fraud cases totaling more than $1.8 billion. |
| 2 | A surgeon and chiropractor face allegations involving $135 million in unnecessary atherectomies. |
| 3 | A father and son allegedly used rehab centers to repeatedly bill insurers for patients who received little or no treatment. |
| 4 | Other cases involve hospice certifications, prescriptions and genetic testing. |
Summary
The coordinated charges bring together several alleged healthcare fraud schemes affecting patients, insurers and public programs. Authorities say the cases show how unnecessary medical services, fabricated eligibility claims, kickbacks and patient exploitation can generate large fraudulent bills. The defendants will have the opportunity to respond to the allegations through the federal court process.
Frequently Asked Questions
How many people were charged?
Federal authorities charged 15 people, including six medical professionals, in the Southern California cases.
What was the largest alleged scheme?
The largest allegation involved a $1.6 billion substance abuse treatment scheme tied to rehabilitation centers in the Los Angeles area.
What procedures are at the center of the medical case?
The case involving Harold Tabaie and Hany Malek concerns alleged unnecessary atherectomies, invasive procedures intended to clear arterial plaque.
Have the defendants been convicted?
No. The individuals have been charged, and the allegations remain subject to court proceedings.