California Doctor Sentenced for $45 Million Medicare Fraud Scheme Involving Botox Injections

Glendale Physician Convicted for Massive Medicare Fraud Scheme

Dr. Violetta Mailyan, a 45-year-old physician from Glendale, was sentenced to 15 years in federal prison for orchestrating one of the nation’s largest Medicare fraud schemes, according to federal prosecutors. The scheme involved fraudulent billing of over $45 million in claims for Botox injections through her clinic, Healthy Way Medical Center.

Details of the Fraudulent Activity

Investigations led by the Department of Justice, the Office of Inspector General, and the FBI revealed that Mailyan billed thousands of Botox injections to Medicare—many of which were never administered to patients. She circumvented Medicare's coverage rules for Botox and was found to have fabricated medical records to support these false claims.

Lavish Lifestyle Funded by Medicare Payments

Authorities stated that Mailyan used Medicare payments to finance a high-end lifestyle. She used the proceeds to purchase luxury items, including a Tesla Cybertruck, a $12,000 17th-century crossbow, and a $3,000 painting. Additionally, Mailyan owned several properties in Surfside and Glendale valued at more than $7 million and held bank and brokerage accounts with over $7 million in assets.

Fraudulent Claims While on Vacation

According to the Justice Department, Mailyan continued to bill Medicare for providing Botox injections when she was physically absent from California. At times she claimed to be performing these services while vacationing in Mexico, Hawaii, Las Vegas, Pennsylvania, and New York. For instance, she billed over $200,000 for supposed Botox services in California during a period when she was reportedly relaxing on the beach in Cabo.

Efforts to Obstruct the Federal Investigation

Mailyan was convicted on nine counts of wire fraud and three counts of obstruction of an investigation of a healthcare offense. Prosecutors indicated that she tried to mislead investigators by falsifying medical records and forging Medicare beneficiary signatures, including signing for a person who was incarcerated in federal prison at the time the purported treatments took place.

Asset Forfeiture and Restitution Orders

Following her conviction, the court ordered immediate forfeiture of more than $16 million worth of real and personal property, including the Tesla Cybertruck, the four properties in Surfside and Glendale, and significant holdings in various bank and brokerage accounts. Additionally, Mailyan was ordered to pay $32 million in restitution to Medicare.

Broader Context of Healthcare Fraud

This case is among several high-profile healthcare fraud prosecutions in California cited by federal authorities. Prosecutors continue to pursue cases involving fraudulent Medicare billing, misuse of medical records, and healthcare providers seeking personal enrichment through Medicare fraud schemes.

Source: latimes.com.