A California doctor has been convicted by a federal jury for submitting millions in fraudulent Medicare claims for Botox injections, prosecutors said, in a scheme that funded a lavish lifestyle including luxury vacations and collectible purchases.
Violetta Mailyan, 45, of Glendale, was found guilty on nine counts of wire fraud and three counts of obstruction of a criminal investigation into healthcare offenses, the Justice Department announced.
Doctor Allegedly Submitted Millions in Fraudulent Claims
Authorities said Mailyan’s clinic, Healthy Way Medical Center, billed Medicare for Botox injections that were medically unnecessary or never actually administered. According to prosecutors, she submitted more than $45 million in claims, making her one of the highest-paid providers in the United States for Botox treatments. Over four years, Mailyan was reportedly paid over $24 million—six times the amount of the next highest providers, all neurologists.
The scheme included billing for injections on days when Mailyan was traveling to locations such as Cabo, Mexico; Maui, Hawaii; Las Vegas; Pennsylvania; and New York. Some claims were made when the clinic was closed or even when patients were in federal prison.
Fraud Detected Through Data Analytics
The Department of Justice’s Health Care Fraud Section used data analytics to identify Mailyan as an extreme outlier among providers. Officials said her billing patterns were unusually high and flagged for investigation, revealing a systematic effort to defraud Medicare.
Assistant Attorney General Colin McDonald said, “Violetta Mailyan falsely diagnosed patients, fraudulently billed Medicare for Botox injections while she was on lavish vacations, and tried to trick federal agents with fake records. 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.”
Altering Medical Records to Conceal Fraud
Prosecutors said Mailyan fabricated medical records to make it appear that patients had received medically necessary migraine treatments. This included creating fake consent forms and backdating claims to make injections appear legitimate.
Mailyan’s social media also promoted her as a “BOTOX FILLER NONSURGICAL NOSE COSMETIC DOCTOR,” highlighting the cosmetic nature of much of the work billed as medically necessary.
Lavish Lifestyle Funded by Fraud
Authorities said Mailyan used millions of dollars obtained from Medicare fraud to fund extravagant purchases and trips. Reportedly, she bought luxury items such as a $3,000 painting of Ludwig I, crown prince of Bavaria, and a $12,000 17th-century crossbow, along with luxury vacations.
Potential Penalties and Next Steps
Mailyan faces up to 20 years in prison for each wire fraud count and up to five years for each obstruction count. A sentencing date has not yet been scheduled.
The case highlights the Justice Department’s use of data analytics to detect healthcare fraud and enforce accountability among medical providers submitting false claims, particularly those exploiting government programs like Medicare.
