BREAKING: Feds Bust $2B California Medical Fraud Rings in Predawn Raids, 15 Arrested (October 22, 2026)

 

Federal Agents Strike Before Dawn in Los Angeles

Department of Justice officials announced on Thursday, October 22, 2026, that federal agents had dismantled medical fraud operations in California accused of stealing $2 billion from government and private health care programs. Fifteen defendants, including medical professionals, face charges in what investigators describe as one of the largest health care fraud takedowns in recent years.

The centerpiece of the case is a $1.6 billion sham rehabilitation scheme — described by officials as the largest case of its kind ever brought. Prosecutors say the defendants billed health programs for addiction treatment that was never properly delivered, recruited homeless people to fill rehab beds, pushed patients toward unneeded surgeries, and billed the government for phony hospice care.

A Mansion Raid in Tarzana

Federal SWAT teams carried out a series of predawn raids across the Los Angeles area. In one dramatic operation, agents descended on the $2 million Tarzana mansion of chiropractor Dr. Hany Malek, 61. Agents cut through a security gate, placed ladders against tall fences, and deployed flash-bang grenades before taking Malek into custody. Officials described him as armed and dangerous and said he allegedly kept an arsenal at the property.

Malek was placed in handcuffs and transported in an armored truck. All fifteen defendants are now facing charges related to fraudulent claims, money laundering tied to the proceeds, and related offenses. Federal officials said the investigation is continuing and additional arrests are possible.

Why It Matters

Health care fraud of this scale drains public programs and private insurers alike, ultimately raising costs for patients and taxpayers. The sheer size of the alleged $2 billion loss — and the aggressive, predawn enforcement action — signals that federal prosecutors are making medical fraud a top priority. The Justice Department is expected to release further details as court proceedings get underway.

Sources: New York Post, California Post