Federal Authorities Charge 15 in $1.8 Billion California Medical Fraud Sweep
Updated
Updated · Fox News · Oct 22
Federal Authorities Charge 15 in $1.8 Billion California Medical Fraud Sweep
3 articles · Updated · Fox News · Oct 22
Summary
Fifteen people, including six medical professionals, were charged after predawn raids across Southern California over $1.8 billion in alleged fraud against government and private insurers.
The biggest case centers on Nathan and David Young, who prosecutors say ran a $1.6 billion rehab scam that trafficked addicts into Los Angeles facilities, recycled them for billing and sometimes sedated patients who tried to leave.
A separate $135 million case accuses Anaheim surgeon Harold Tabaie and chiropractor Hany Malek of billing Medicare for unnecessary atherectomies after Malek allegedly posed as a physician and misdiagnosed patients.
Other charges include more than $140 million in false hospice claims, bogus Medi-Cal prescriptions for high-reimbursement generics, and kickbacks tied to unnecessary Medicare genetic tests.
Justice Department officials said the sweep included the largest sober-home fraud scheme they have prosecuted and highlighted data analytics as a key tool in detecting the alleged abuse.
How did fake doctors exploit the system to siphon billions from Medicare before federal agents finally caught on?
What hidden dangers lurk in rehab centers that secretly trap vulnerable patients just to drain their insurance funds?
$60 Billion in Healthcare Fraud Exposed: How Operation Never Say Die Sparked a Federal-State Showdown in California
Overview
Operation Never Say Die exposed a massive healthcare fraud network in Southern California, where sham hospice operators and medical professionals attempted to steal up to $60 million from Medicare. Authorities suspended hundreds of providers and uncovered schemes involving fake terminal diagnoses, kickbacks, and forged records. Advanced data-driven surveillance flagged suspicious billing patterns, leading to arrests and asset freezes. Federal regulators responded by withholding Medicaid funds from states like California and Minnesota, triggering political clashes and rushed provider reviews that disrupted care for thousands. Meanwhile, aggressive audits and administrative burdens strained legitimate clinics, while victims faced lasting harm from falsified records and lost restitution due to executive pardons.