Court orders restitution over $32.9 million, surrender of over $16 million in assets
Violetta Mailyan, 45, of Glendale, California, was sentenced Thursday to 15 years in prison for defrauding Medicare through her medical practice, Healthy Way Medical Center, officials said Friday. The court ordered Mailyan to pay more than $32.9 million in restitution to Medicare. Mailyan must also surrender more than $16 million in assets seized by federal authorities, including real estate, investments and bank funds.
Prosecutors said Mailyan submitted more than $45 million in fraudulent claims for Botox treatments that were unnecessary, performed for cosmetic reasons or never administered. Medicare covers Botox injections for certain medical conditions, including chronic migraines, but does not generally pay for cosmetic procedures.
Investigators found that Mailyan billed Medicare for thousands of treatments supposedly performed on days when Healthy Way Medical Center was closed. Those claims totaled more than $19 million.
Prosecutors said Mailyan also submitted claims for treatments in California while traveling in Mexico, Hawaii, Las Vegas, Pennsylvania and New York. During one trip to Cabo San Lucas, Mexico, she billed Medicare more than $200,000 for services she supposedly provided while away.
Mailyan attempted to conceal the fraud by creating false medical records and forging patient signatures after learning she was under investigation, prosecutors said.
One of the patients Mailyan claimed to have treated was serving time in federal prison when the supposed appointment took place, according to prosecutors.
Prosecutors said Mailyan spent proceeds from the scheme on luxury purchases, including two Tesla vehicles, a Cybertruck and five properties in California. Her purchases also included a 17th-century crossbow valued at $12,000 and a $3,000 painting.
A federal jury convicted Mailyan in May on nine counts of wire fraud and three counts of obstructing a healthcare fraud investigation.