Over a Dozen Charged in Historic $1.6 Billion Medical Fraud Schemes in Los Angeles
TL/DR –
Federal prosecutors in Los Angeles have charged more than a dozen alleged medical fraudsters, including doctors, with making fraudulent claims to government and private health care programs, amounting to $1.6 billion, in a sham rehab case. Among those arrested were Dr. Harold Tabaie and his business partner, chiropractor Hany Malek, who are accused of a $135 million Medicare fraud scheme operated out of two Los Angeles clinics they co-owned and operated. Father-and-son David Young and Nathan Young were also indicted, charged with a years-long scheme to traffic vulnerable patients from around the country to Southern California to receive sham substance abuse treatment billed to private insurance companies for over $1.6 billion.
Federal Prosecutors Charge Alleged Medical Fraudsters in Los Angeles
Los Angeles has seen a significant crackdown on medical fraud as federal prosecutors charge more than a dozen suspects. These individuals are accused of fraudulent claims to private and government health care programs, including a staggering $1.6 billion billed in a sham rehab case, dubbed the largest of its kind.
Notable Arrests in Medical Fraud Case
Eight arrests were made recently, including renowned cardiothoracic surgeon, Dr. Harold Tabaie, 78, and his business associate, chiropractor Hany Malek, 61. They’re alleged to have orchestrated a $135 million Medicare fraud scheme through two clinics they jointly owned in Los Angeles.
Tabaie is believed to have performed unnecessary and invasive plaque-clearing procedures multiple times on the same patients, while Malek, suspected of masquerading as a medical doctor, is said to have diagnosed patients and recommended the surgery. To cover up Tabaie’s unusually high volume of procedures, the defendants are alleged to have fraudulently billed under other medical providers who had not actually performed the surgeries.
Indictment of Father-Son Duo in Sham Rehab Scheme
Father-and-son David Young and Nathan Young of Los Angeles were also indicted. They are accused of running a long-term scheme to exploit vulnerable patients from various regions and bill private insurance companies for sham substance abuse treatment, totaling over $1.6 billion.
The Youngs, who controlled multiple Los Angeles-area substance abuse treatment firms, reportedly directed body brokers to target the homeless and addicts attending 12-step programs. They sought individuals with insurance policies that offered generous reimbursements.
Potential patients were allegedly enticed with free flights, money, housing, gift cards, and even illegal drugs. However, patients with subpar insurance were placed in cramped, unsanitary housing. The Youngs’ substance abuse therapy allegedly consisted of participation-optional Zoom sessions with more than 100 attendees.
Accusations of Hospice Fraud
Among the newly filed hospice fraud cases, Dr. Richard Keech, 83, of Torrance was accused of defrauding Medicare with over $10 million in false claims for unnecessary services. Keech allegedly referred Medicare beneficiaries to receive hospice care and falsely certified that these individuals were terminally ill, leading to claims for reimbursement based on these false certifications.
First Assistant U.S. Attorney Bill Essayli expressed disappointment over the alleged actions of the healthcare professionals involved in these schemes. He emphasized that such activities drain essential funds from public and private health insurance systems that should be available for those who genuinely need them.
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