California doctor convicted of $45M Medicare fraud scheme that funded luxury vacations and a $12K crossbow
FIRST ON FOX: A California doctor accused of submitting more than $45 million in false and fraudulent Medicare claims for Botox injections—in an effort to fund a lavish lifestyle that included luxury vacations and the purchase of a $12,000 17th-century crossbow—has been convicted by a federal jury, the Justice Department announced.
Violetta Mailyan, 45, of Glendale, was convicted of nine counts of wire fraud and three counts of obstruction of a criminal investigation of a healthcare offense.
Mailyan's operation in the Los Angeles suburb was flagged by the DOJ's Health Care Fraud Section’s Data Analytics Team. An analysis showed that she had been paid more by Medicare for Botox injections than any other doctor in the United States, making her an extreme outlier among medical providers, prosecutors said.
At the time, Mailyan had been paid more than $24 million over the previous four years — six times the amount received by the next highest group of providers, all of whom were neurologists.
"Violetta Mailyan falsely diagnosed patients, fraudulently billed Medicare for Botox injections while she was actually on lavish vacations, and tried to trick federal agents with fake records," said Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division. "The Fraud Division’s data-driven approach shines a light on fraud schemes across the country, ensuring that no doctor can engage in these brazen schemes to steal taxpayer dollars."
In addition to scheming to defraud Medicare, Mailyan altered medical records in an attempt to mislead investigators, authorities said. She owned and operated the Healthy Way Medical Center, which billed Medicare for Botox injections that were medically unnecessary and never actually provided.
This included billing for injections on dates when Mailyan was traveling to Cabo, Mexico; Maui, Hawaii; Las Vegas; Pennsylvania; and New York.
Furthermore, some of the injections allegedly took place on dates when the clinic was closed, or when the patient who supposedly received the treatment was actually incarcerated in federal prison.
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Typically, Medicare reimburses medical providers for Botox injections only when they are deemed necessary to treat documented cases of chronic migraines. However, Mailyan billed and received payments for thousands of injections that were either never provided, administered solely for cosmetic purposes, or given to patients whose primary care physicians had not referred them for chronic migraine treatment.
On her social media accounts, Mailyan even described herself as a "BOTOX FILLER NONSURGICAL NOSE COSMETIC DOCTOR."
Prosecutors said that in an effort to conceal the fraud, she fabricated patient medical records—including patient consent forms—to make it appear as if patients received migraine treatments in her office. She was accused of backdating some claims to bill for injections before the patients had even contacted her clinic to request an appointment.
Mailyan used millions of dollars she received from the fraud to fund lavish vacations and purchase luxury collectible goods, including a $3,000 painting of Ludwig 1, crown prince of Bavaria, and the $12,000 17th-century crossbow, prosecutors said.
Following her conviction, the jury also found that a Tesla Model X, a Tesla Cybertruck, funds in multiple bank accounts, and four properties in Surfside and Glendale, California, were proceeds of the fraud and subject to forfeiture.
Mailyan faces up to 20 years in prison for each count of wire fraud and five years in prison for each count of obstruction. A sentencing date has not yet been set.
Fox News Digital has reached out to Mailyan's legal team for comment.