Federal prosecutors say the business partners billed Medicare for unnecessary arterial procedures performed at two Los Angeles clinics.
LOS ANGELES, CA — A cardiothoracic surgeon and a chiropractor have been indicted in an alleged $135 million Medicare fraud scheme that federal prosecutors say involved medically unnecessary artery procedures, false billing and kickbacks offered to patients.
Dr. Harold Tabaie, 78, of Anaheim, and Hany Malek, 61, of Tarzana, were charged in federal court with four counts each of health care fraud, the Justice Department announced Thursday. Malek also faces two counts of bank fraud stemming from alleged false statements in a Paycheck Protection Program loan application. The charges are allegations, and both defendants are presumed innocent unless proven guilty.
Prosecutors allege Tabaie and Malek co-owned and operated West Regional Cardio Thoracic and Vascular Surgeons and Angelus Medical Clinic Multi Specialty Group, two Los Angeles-based clinics. According to the indictment, the clinics billed Medicare for atherectomies that investigators contend were not medically necessary. Atherectomy is an invasive procedure used to remove plaque from arteries.
The indictment alleges Malek, a chiropractor, posed as a medical doctor while diagnosing patients with arterial disease and recommending atherectomies. Prosecutors say Tabaie then performed procedures on some patients who did not have the arterial disease that would justify the treatment. He also allegedly performed repeat atherectomies on patients after earlier procedures had been unsuccessful. Federal officials said some patients experienced severe pain and discomfort following the procedures.
Prosecutors also accuse the two men of attempting to conceal the number of atherectomies Tabaie performed. The indictment alleges procedures were billed under the names of other medical providers who had not actually performed the surgeries. The Justice Department said investigators identified the case through data analysis showing Tabaie was an extreme national outlier in billing for atherectomy procedures. Public Medicare enrollment records list Tabaie in vascular surgery and Malek in chiropractic care.
The government further alleges that Tabaie and Malek used improper incentives to encourage Medicare beneficiaries to receive services at their clinics. Those alleged kickbacks included free transportation, groceries, household goods, gift cards and payments toward utility bills. Clinic employees, acting at Malek’s direction, also allegedly persuaded some patients to leave their existing insurance plans and enroll in particular Medicare plans that provided higher reimbursements for the procedures.
The federal allegations come after public Medicare data had previously drawn attention to Tabaie’s unusually high volume of vascular procedures. A ProPublica and CareSet analysis published in 2023 found that a relatively small number of doctors accounted for a large share of atherectomies billed to Medicare. The analysis placed Tabaie among the highest-paid physicians in the country for the procedures during the period studied. That earlier analysis did not itself establish criminal wrongdoing.
Malek faces separate allegations involving the federal Paycheck Protection Program. Prosecutors say he diverted clinic revenue through another company he owned and in 2021 submitted a loan application claiming that company had suffered a decline of more than 25% in gross receipts from 2019 to 2020. The indictment alleges that statement was false. Prosecutors also accuse Malek of using loan proceeds for personal expenses, other businesses, family credit card payments and purchases of coins rather than only for eligible business costs.
The case is part of a broader Los Angeles-area federal health care fraud enforcement action announced Thursday. The Justice Department said 15 defendants, including six medical professionals, were charged in separate cases involving an alleged $2 billion in fraudulent claims to public and private health programs. The other cases include alleged fraud involving substance abuse treatment, hospice services, genetic testing, pharmacy claims and prescription drug samples.
The FBI, the Department of Health and Human Services Office of Inspector General and the U.S. Marshals Service are investigating the case against Tabaie and Malek. Assistant U.S. Attorney David Y. Pi of the Major Frauds Section and Justice Department Trial Attorney Kelly R. Churnet are prosecuting it. The case, United States v. Harold Tabaie and Hany Malek, is pending in U.S. District Court for the Central District of California before U.S. District Judge John F. Walter.
No trial outcome has been reached, and the Justice Department’s case page identifies the matter as pending. Federal prosecutors said an indictment contains allegations only and that the defendants are presumed innocent unless and until they are proven guilty beyond a reasonable doubt.
Author note: Last updated October 22, 2026.