California doctor defrauded Medicare of more than $45 million through fake Botox claims; spent the money on five properties, two Teslas and expensive collectibles; sentenced to 15 years in federal prison
A California doctor who defrauded Medicare of more than $45 million by billing for Botox injections she never administered has been sentenced to 15 years in federal prison. Violetta Mailyan, 45, used the proceeds of the elaborate healthcare fraud scheme to purchase multimillion-dollar properties, luxury cars and expensive collectibles, according to the US Department of Justice (DOJ).Mailyan, who operated the Healthy Way Medical Center clinic in Glendale, California, was convicted in May by a federal jury in the Central District of California on nine counts of wire fraud and three counts of obstruction of a criminal investigation into a healthcare offence. Her sentence was announced by the DOJ on Friday.In addition to the prison term, Mailyan has been ordered to forfeit more than $16 million in assets and pay approximately $32.9 million in restitution to Medicare.
Doctor billed Medicare for Botox injections she never administered
According to prosecutors, Mailyan fraudulently billed Medicare for thousands of Botox injections that were either never administered or were not provided for the approved medical purpose of treating chronic migraines.Medicare reimburses healthcare providers for Botox injections when they are required to treat documented cases of chronic migraines. However, investigators found that Mailyan submitted claims for treatments that had not taken place.Prosecutors said she also billed Medicare for more than $19 million in injections supposedly administered on days when her clinic was closed. On several other occasions, she submitted claims while travelling outside California, including during trips to Mexico, Hawaii, Las Vegas, Pennsylvania and New York.In one particularly striking example, Mailyan allegedly billed more than $200,000 for treatments supposedly provided to patients in California while she was actually vacationing in Cabo, Mexico.A photograph recovered from her phone and presented by prosecutors showed a scenic beach view in Cabo on a day she had billed Medicare $34,560 for services allegedly provided at her Glendale clinic.
Forged medical records and signatures to conceal fraud
Among the luxury items purchased by Violetta Mailyan were a 17th-century crossbow worth $12,000 and a painting valued at $3,000. (Photo: U.S. Department of Justice)
The investigation also revealed that Mailyan attempted to cover up the fraudulent billing by falsifying medical records after investigators began examining her activities.Prosecutors said she forged the signatures of Medicare beneficiaries, including one man who was in prison during the period when she claimed to have treated him.She also submitted the fabricated records to federal investigators after receiving a grand jury subpoena seeking medical documentation. According to prosecutors, the records were intended to make it appear that she had provided treatments to patients she had never seen.The scale of her billing activity reportedly made her an extreme outlier among doctors receiving Medicare payments for Botox treatments. Prosecutors said Mailyan received six times the amount paid to the next-highest group of providers, which consisted entirely of neurologists.
Bought five properties, two Teslas and expensive collectibles
Violetta Mailyan used proceeds from the $45 million Medicare fraud to purchase five California properties and two Tesla vehicles, including a Cybertruck. (Photo: U.S. Department of Justice)
Authorities said Mailyan used the proceeds of the Medicare fraud to fund an extravagant lifestyle. She purchased five pieces of California real estate, including properties in Surfside and Glendale.The DOJ had previously said that four of her properties had combined equity of approximately $7.3 million. She also purchased two Tesla vehicles, one of them a Cybertruck.Her spending extended to rare and expensive collectibles. Among the items she acquired were a 17th-century crossbow valued at approximately $12,000 and a painting of Ludwig I, Crown Prince of Bavaria, worth around $3,000.As part of the sentence, Mailyan was ordered to forfeit more than $16 million in property, including bank funds, personal belongings, real estate and securities. She must also pay approximately $32.9 million in restitution to Medicare.It was not immediately clear when she would begin serving her prison sentence.
Trump administration steps up efforts to tackle government fraud
The case comes amid the Trump administration’s wider efforts to crack down on fraud involving government programmes. President Donald Trump established a task force to eliminate fraud in March and placed Vice President JD Vance in charge of the initiative.The DOJ has said its work to combat fraud supports the administration’s efforts. In October, Trump also announced a $25 million programme aimed at encouraging members of the public to report suspected government fraud.Under the Fraud Whistleblower Incentive Program, individuals whose tips lead to a fraud conviction or significant federal enforcement action could receive up to $30,000. The Justice Department will administer the programme.During the announcement, Trump said the reward could amount to a one per cent commission on the amount of fraud uncovered through a tip. He also said he would decide who received the money if multiple people claimed responsibility for providing the information.Meanwhile, Centers for Medicare and Medicaid Services Administrator Dr Mehmet Oz has raised concerns about possible organised fraud involving senior care centres. In October, Oz alleged that the Chinese mafia could be orchestrating Medicaid fraud through such facilities.During visits to Kent Senior Care and Evergreen Adult Day Care in Flushing, Queens, Oz described the experience as suspicious and suggested that organised groups could be facilitating fraudulent claims. His remarks came as part of a multi-agency federal investigation.New York Governor Kathy Hochul, meanwhile, has said the state is undertaking a major effort to combat Medicaid fraud and abuse.Trump has also announced that more than 20 million seniors would receive unexpected Medicare payments of $90. The payments are intended to help eligible Medicare Part B beneficiaries cover their premiums.The President claimed that the money represented surplus funds collected through fees used to operate HealthCare.gov during the Biden administration. In a letter accompanying the announcement, Trump said the money belonged to working Americans and was being returned to them, CBS News reported.
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