Federal agents descend on Tarzana as part of healthcare fraud bust - ABC7 Los Angeles
Federal agents arrested 15 individuals, including medical professionals, in a massive $2 billion healthcare fraud bust. The scheme involved unnecessary medical procedures and fraudulent billing of Medicare and private insurance.
Why it matters
This represents a significant crackdown on systemic fraud within the U.S. healthcare system, specifically targeting predatory billing practices.
TARZANA, LOS ANGELES (KABC) -- Several healthcare professionals are among more than a dozen people who have been arrested and charged for what federal prosecutors say amounts to $2 billion worth of alleged healthcare fraud.
ABC7's Kevin Ozebek was there as federal agents carried out one of those arrests in Tarzana Thursday morning. Loud flash bangs were heard going off and FBI agents were seen scaling a hillside to reach a mansion around 6 a.m.
Moments later, 61-year-old Hany Malek was placed in handcuffs and taken into custody.
Federal prosecutors allege Malek is a chiropractor who posed as a medical doctor.
Investigators allege that even though he's just a chiropractor, he would diagnose patients with a disease just so they would have a procedure to remove plaque from their arteries. Prosecutors allege the deliberate misdiagnosis were part of a scheme to bill Medicare.
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