A Los Angeles chiropractor posed as a medical doctor and directed Medicare patients toward invasive artery procedures they did not need, federal prosecutors allege. The indictment says surgeon Harold Tabaie performed treatments, sometimes repeatedly, and some patients experienced pain and discomfort.
Hany Malek, 61, of Tarzana, and cardiothoracic surgeon Harold Tabaie, 78, of Anaheim, were charged in a federal indictment announced on October 22, 2026. The two men co-owned Angelus Medical Clinic Multi Specialty Group in Los Angeles and West Regional Cardio Thoracic and Vascular Surgeons in Inglewood, according to the U.S. Attorney’s Office.
The clinics allegedly billed Medicare nearly $135 million and received at least $54.8 million in payments. Prosecutors say much of the billing involved unnecessary treatment or other improper practices. Malek is also accused of fraud involving a pandemic-relief loan obtained by a company he controlled.
The case was announced as part of a Southern California crackdown involving 15 defendants accused in separate health care fraud schemes. Both men face four health care fraud counts, while Malek alone faces two additional bank fraud counts.
Patients Were Tested Before Seeing a Medical Doctor or Nurse
Malek was a chiropractor, not a medical doctor. According to FOX 11, he allegedly wore a white lab coat while presenting himself as qualified to diagnose arterial disease and recommending procedures to patients he referred to Tabaie. The indictment places Malek in a management role at both clinics, serving as co-owner, secretary and chief financial officer.
The federal indictment says Malek directed clinic staff to order the same series of medical tests for patients regardless of their medical histories, before a physician or nurse examined them. Malek and other people who were neither medical doctors nor licensed nurses allegedly reviewed results and told new patients they needed multiple surgical procedures.
Some Patients Underwent Repeat Artery Procedures, Prosecutors Say
An atherectomy uses a catheter to remove plaque from blood vessels, ordinarily to treat peripheral artery disease. The indictment alleges that Tabaie performed the invasive procedure even on vessels without disease. Other patients allegedly underwent operations even though their arterial disease was not significantly affecting their daily lives and less invasive measures, such as walking programs or smoking cessation, would have been appropriate.
Prosecutors also accused Tabaie of repeating atherectomies on people whose earlier procedures had not worked. The indictment describes pain and discomfort during and after some of the treatments. In an interview with FOX 11, federal prosecutor Bill Essayli said some patients had suffered permanent damage and continued experiencing pain.
Free Groceries, Gift Cards and Insurance Changes Drew Patients In
The indictment alleges that the clinics offered Medicare beneficiaries improper benefits in exchange for obtaining services. Those included free transportation, groceries, household items, assistance with utility bills, help with prescription costs and gift cards worth approximately $50 to $100.
At Malek’s direction, employees also allegedly urged patients to leave their existing health insurance plans and enroll in particular Medicare plans. Prosecutors say the switches were intended to increase how much the clinics could receive for atherectomy claims.
Medicare Paid at Least $54.8 Million on Nearly $135 Million in Claims
The indictment puts the clinics’ Medicare claims at approximately $134,955,000 from around January 2016 into 2023 and says Medicare paid them at least approximately $54,817,000. Prosecutors allege much of the billing involved unnecessary procedures, claims that did not accurately describe the treatment, or services obtained through improper patient incentives.
Federal investigators allege that clinic staff submitted some claims under the names of doctors who had not performed the procedures, in part to conceal Tabaie’s high treatment volume and reduce the likelihood of a Medicare audit. Prosecutors also describe improperly separating services into multiple billable components to increase reimbursement.
Data analysis drew attention to Tabaie’s unusually high atherectomy billing compared with other Medicare providers. A Justice Department chart shows him as an extreme outlier in claimed procedures from 2016 through 2023. The four health care fraud counts identify individual claims of approximately $14,000 each, separate examples within the alleged broader scheme.
Malek Also Faces Charges Over a $371,035 Pandemic Loan
The two bank fraud counts concern Scandin Medical Management Enterprises, a company the indictment says Malek owned and used to pay employees of the clinics. Prosecutors allege the business received revenue transferred from the medical practices but did not independently generate that income.
On March 12, 2021, Malek allegedly applied for a $371,035 second-draw Paycheck Protection Program loan by falsely representing that Scandin’s gross receipts had fallen more than 25% between comparable periods in 2019 and 2020. The indictment says the bank funded the loan, after which Malek used proceeds for unrelated businesses, family members’ credit cards, personal expenses and coin purchases. On October 15, 2021, he allegedly submitted an application seeking forgiveness of the loan in full.
Federal Agents Arrested Malek at a Tarzana Home
ABC7 Los Angeles witnessed federal agents arriving at Malek’s gated Tarzana property around 6 a.m. on October 22. The station reported hearing flash-bang devices and seeing agents approach across a hillside before taking Malek into custody. FOX 11 also reported Tabaie’s arrest as part of the operation.
The indictment was filed October 20 in the U.S. District Court for the Central District of California, case 2:26-cr-00668-JFW, before Judge John F. Walter. The FBI, HHS Office of Inspector General, IRS Criminal Investigation and U.S. Marshals Service participated in the investigation. Both defendants are presumed innocent unless and until proven guilty.
How Medicare Patients Can Review Surgery Claims and Seek Help
Medicare advises beneficiaries to review claims and compare dates, providers and procedures with the care they actually received. Anyone concerned about a recommended nonemergency artery procedure can ask the treating clinician to explain the medical findings and consider an independent surgical opinion. Medicare Part B covers second surgical opinions for some medically necessary, nonemergency surgeries.
For people who believe they were affected by Angelus or West Regional, the Justice Department maintains a case-specific victim page. The Fraud Division’s Victim Assistance Unit can be reached at 1-888-549-3945 or victimassistance.fraud@usdoj.gov. Patients may want to retain medical records, insurance statements, test results and procedure dates. Suspected Medicare billing fraud can also be reported through 1-800-MEDICARE (1-800-633-4227).
