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DOJ Charges 15 in $2 Billion Healthcare Fraud Scheme

By Drooid · Oct 22, 2026, 11:59 PM UTC · How we work

Summary

Story summary

The U.S. Department of Justice charged 15 people, including six doctors, with $2 billion healthcare fraud.
Federal agents raided a Tarzana mansion pre-dawn, arresting eight suspects.
Dr. Harold Tabaie and Hany Malek billed Medicare $135 million and Medicaid $134 million for unnecessary procedures.
Body brokers Honey Phipps and Cody Phipps recruited homeless patients for sober homes, generating over $600 million fraud.
Prosecutors charged a scheme that stole more than $140 million by falsifying hospice certifications.

History

Historical Context

In 1997 the federal government earmarked $100 million to fund more than 400 FBI agents targeting Medicare fraud. The effort expanded when HHS’s Office of Inspector General and the DOJ created the Medicare Fraud Strike Force in 2007 and added the HEAT team in 2009, helping recover $2.5 billion in FY 2010. Those precedents underlie the 2024 indictment of fifteen providers.

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Story summary

The U.S. Department of Justice charged 15 people, including six doctors, with $2 billion healthcare fraud.
Federal agents raided a Tarzana mansion pre-dawn, arresting eight suspects.
Dr. Harold Tabaie and Hany Malek billed Medicare $135 million and Medicaid $134 million for unnecessary procedures.
Body brokers Honey Phipps and Cody Phipps recruited homeless patients for sober homes, generating over $600 million fraud.
Prosecutors charged a scheme that stole more than $140 million by falsifying hospice certifications.

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