A California physician convicted of orchestrating a sweeping health care fraud scheme was sentenced Thursday to 15 years in federal prison for billing Medicare more than $45 million for fictitious or medically unnecessary Botox procedures.
Violetta Mailyan, 45, of Glendale, operated Healthy Way Medical Center, the practice through which she carried out the multi-million dollar fraud. A federal jury in May found Mailyan guilty of nine counts of wire fraud and three counts of obstructing a healthcare fraud investigation.
Federal prosecutors established during the trial that Mailyan submitted claims totaling upwards of $45 million for Botox injections that were either purely cosmetic, entirely unadministered, or clinically unnecessary. While Medicare covers Botox treatments for specific therapeutic needs such as chronic migraines, the program excludes coverage for cosmetic enhancements.
Investigators uncovered evidence showing that Mailyan systematically billed the federal program for thousands of treatments purportedly delivered on dates when her medical clinic was entirely closed. Those specific claims alone accounted for more than $19 million of the fraudulent billing.
Furthermore, court documents revealed that Mailyan billed Medicare for medical procedures allegedly performed in California while she was traveling out of state or internationally. Prosecutors detailed instances where she submitted more than $200,000 in claims for services supposedly rendered during a single trip to Cabo San Lucas, Mexico. Similar fraudulent billings were filed while she vacationed in Hawaii, Las Vegas, Pennsylvania, and New York.
Once she realized federal authorities were investigating her practice, Mailyan attempted to cover up the scheme by fabricating medical records and forging patient signatures. Investigators noted that one of the individuals Mailyan claimed to have treated was actually incarcerated in a federal prison at the time of the scheduled appointment.
Prosecutors stated that Mailyan used the illicit proceeds to fund an extravagant lifestyle. Her luxury purchases included two standard Tesla vehicles, a Tesla Cybertruck, and five real estate properties across California. Investigators also seized high-end collectibles bought with the stolen funds, including a 17th-century crossbow valued at $12,000 and a $3,000 painting.
In addition to the 15-year prison term, the court ordered Mailyan to pay more than $32.9 million in restitution to Medicare. She is also required to forfeit more than $16 million in assets previously seized by federal authorities, encompassing her real estate holdings, investment accounts, and bank funds.
