The Los Angeles-area cases involve more than $1.8 billion in alleged fraudulent claims spanning addiction treatment, Medicare procedures and hospice care.
LOS ANGELES, CA — Federal prosecutors charged 15 people, including six medical professionals, in a sweeping collection of Southern California health care fraud cases involving more than $1.8 billion in allegedly fraudulent claims to government and private insurance programs, the Justice Department announced Thursday.
The Oct. 22 enforcement action brought together several separate investigations involving substance abuse treatment, invasive artery procedures, hospice services, genetic testing and illegal kickbacks. Eight defendants were arrested Thursday, according to federal prosecutors. The largest allegations center on more than $1.6 billion in claims tied to purported addiction treatment operations that prosecutors say recruited vulnerable patients from across the country and brought them to California and other locations.
In that case, prosecutors charged Nathan Young, 39, and his father, David Young, 71, both of Los Angeles, along with Honey Phipps, 42, and Cody Phipps, 36, both of Greenville, Texas. The Justice Department alleges the defendants controlled or worked with substance abuse treatment companies and used recruiters to target people experiencing homelessness, poverty or addiction. Prosecutors said prospective patients were offered such inducements as airfare, housing, money and gift cards, while insurers were billed for treatment that was allegedly unnecessary, inadequate or not provided as represented. The allegations have not been proven in court.
Federal authorities described the alleged addiction-treatment operation as the largest fraud case of its kind prosecuted by the Justice Department. Prosecutors allege patients were repeatedly moved through treatment programs so insurers could continue to be billed. Some patients were allegedly discouraged or prevented from leaving facilities, and workers were instructed in some instances to coach patients on symptoms needed to qualify for treatment. Nicholas Moore, 33, of North Myrtle Beach, North Carolina, has pleaded guilty to conspiracy charges connected to the broader operation and admitted helping submit $199 million in fraudulent claims, according to the Justice Department.
Another case focuses on Dr. Harold Tabaie, 78, of Anaheim, a cardiothoracic surgeon, and Hany Malek, 61, of Tarzana, a chiropractor. They were indicted in an alleged $135 million scheme involving atherectomies, procedures used to remove plaque from arteries. Prosecutors allege the procedures were performed on Medicare patients who did not need them, including some patients who underwent repeat procedures. The government said data analysis identified Tabaie as an unusually high biller of atherectomy procedures compared with other providers nationwide.
The indictment alleges Malek presented himself as a medical doctor, diagnosed patients with arterial disease and recommended procedures that Tabaie later performed. Prosecutors also allege the defendants sometimes billed procedures under other providers’ names to conceal the volume of surgeries and offered patients benefits such as transportation, groceries, gift cards and help with utility bills. Tabaie and Malek each face health care fraud charges, while Malek also faces bank fraud counts related to allegations involving a Paycheck Protection Program loan. Both are presumed innocent unless proven guilty.
Federal prosecutors also announced several hospice-related cases involving patients who allegedly were enrolled despite not being terminally ill. Geoffrey Jimenez, 60, of Los Angeles, is accused of operating Transitions Hospice Inc. and billing Medicare about $9.8 million for allegedly unnecessary or unprovided services. Prosecutors said Jimenez controlled more than a dozen additional hospice entities that submitted more than $107 million in similar claims. Dr. Richard Keech, 83, of Torrance, is separately accused of signing documents that falsely certified Medicare beneficiaries as terminally ill. Armani Raffi, 59, of Van Nuys, was charged in an alleged scheme involving four hospice companies that prosecutors say submitted about $21 million in false claims.
The enforcement action also included allegations involving genetic testing and patient referrals. Doctors Hassan Badday, 48, of Los Angeles, and Robby Ayoub, 52, of Huntington Beach, were charged separately with allegedly accepting kickbacks connected to medically unnecessary genetic testing orders. Federal prosecutors said testing authorized by Badday led to more than $4.2 million in claims, while testing linked to Ayoub resulted in more than $1.3 million in billed claims. Thomas Steven Mladinich, 38, of Newport Beach, was charged with receiving illegal kickbacks for referrals to a treatment facility and admitted in a plea agreement that he accepted payments tied to patient referrals.
The takedown also intersected with a Medi-Cal pharmacy case first announced earlier this year. Christina Mareik, 61, of Whittier, was indicted in connection with an alleged scheme that generated about $269 million in fraudulent claims to California’s Medicaid program. Prosecutors allege Mareik and others exploited a temporary suspension of certain prior-authorization requirements and submitted claims for medically unnecessary prescription drugs through Monte Vista Pharmacy. Medi-Cal paid roughly $178.7 million on the claims, according to federal court filings cited by the Justice Department. Mareik had previously been charged by criminal complaint in June.
The investigations involve the FBI, the Department of Health and Human Services Office of Inspector General, IRS Criminal Investigation, the Drug Enforcement Administration, the U.S. Marshals Service and the California Department of Justice, depending on the individual case. Federal prosecutors stressed that indictments, criminal complaints and informations contain allegations and do not establish guilt. Proceedings against the defendants are continuing in federal court, while investigators pursue the separate cases and any related asset-forfeiture actions.
Author note: Last updated October 22, 2026.