LOS ANGELES - A federal judge sentenced a Glendale doctor to 15 years in prison for orchestrating a $45 million health care fraud scheme that systematically billed Medicare for fake and unneeded Botox treatments to bankroll a lavish lifestyle.
The backstory:
Dr. Violetta Mailyan owned and operated Healthy Way Medical Center in Glendale, a clinic that claimed to provide cosmetic and beauty treatments, according to the Department of Justice.
While Medicare reimburses medical providers for Botox injections when clinically documented and referred by primary physicians to treat chronic migraines, Mailyan billed for thousands of injections that were cosmetic, unreferred, or never administered.
Federal data analytics revealed that Mailyan was paid more by Medicare for Botox injections than any other physician in the nation, collecting over $24 million across a four-year period—six times the amount disbursed to the next highest group of providers, who were all neurologists.
PREVIOUS COVERAGE: California doctor convicted in $45M Medicare fraud that funded lavish trips, $12K antique crossbow
Trial evidence established that she billed more than $19 million for treatments purportedly rendered on days her clinic was closed, and she frequently submitted claims while vacationing in Cabo, Maui, Las Vegas, Pennsylvania, and New York.
On one Cabo trip, she billed Medicare more than $200,000 for California procedures while relaxing on the beach, officials said.
A picture from Mailyan's phone sent from Cabo the same day she billed Medicare $34,560 for services allegedly rendered in Glendale. / DOJ
When federal agents began closing in, Mailyan backdated claims to dates prior to patients contacting her office and forged beneficiary signatures on medical charts, including for one patient who was serving time in federal prison during the purported treatment dates, officials said.
The stolen funds financed high-end assets, including a Tesla Model X, a Tesla Cybertruck, four properties in Surfside and Glendale, a $3,000 painting, and a $12,000 17th-century antique crossbow.
Tesla Cybertruck seized from Mailyan. / DOJ
In addition to 15 years in prison, the court ordered the forfeiture of more than $16 million in real estate, bank funds, and brokerage accounts, as well as $32,904,049.41 in mandatory restitution.
What they're saying:
In handing down the 15-year sentence, the court condemned the conduct, stating that Mailyan’s fraud "was truly breathtaking in scope and shocking in its duration," and noted that her actions were "almost unbelievable in their brazenness".
Following her conviction, Assistant Director in Charge Patrick Grandy of the FBI’s Los Angeles Field Office noted that the multi-agency probe had uncovered "the largest Botox fraud scheme in the United States, to include brazenly billing for someone who was incarcerated". Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division emphasized that the division’s data-driven enforcement "will shine a light on fraud schemes across the country, ensuring that no doctor can engage in these types of brazen schemes to rob Medicare". Acting Deputy Inspector General Scott J. Lampert of HHS-OIG underscored that the defendant’s actions were "a blatant betrayal of patients and the public trust".
What we don't know:
Federal investigators have not publicly disclosed the exact total number of individual patients whose personal information or medical files were fabricated during the multi-year operation. Furthermore, it remains unknown what percentage of the remaining $32.9 million restitution balance the government will ultimately succeed in recovering beyond the already seized real estate, brokerage accounts, and luxury items.
What's next:
Mailyan will be transferred to the Federal Bureau of Prisons to begin serving her 180-month sentence.
Meanwhile, Assistant U.S. Attorney Tara Vavere and the Central District of California’s Asset Forfeiture and Recovery Section will proceed with the liquidation of Mailyan’s seized California homes, luxury vehicles, and brokerage assets to reimburse the Medicare program.
The Source: This report is based on official federal court records and statements released by the U.S. Department of Justice, the FBI Los Angeles Field Office, and the Department of Health and Human Services Office of Inspector General, alongside trial coverage and public filings stated in previous FOX 11 reports.