A federal jury has found a doctor from Glendale guilty of orchestrating a fraudulent scheme that siphoned off $45 million from Medicare by falsely billing for Botox injections. Dr. Violetta Mailyan, who managed the Healthy Way Medical Center, twisted the system by creating fake diagnoses and billing for treatments while indulging in luxury vacations.
The Fraudulent Operations
While Medicare may cover Botox injections for chronic migraines, evidence unveiled in court showed that Mailyan exploited this by charging for injections that were either for cosmetic purposes or had never been administered at all. Over a span of four years, she raked in more than $24 million for these supposed treatments, an astounding six times more than the next highest group of providers, who were neurologists.
Mailyan’s fraudulent activities even took place during her vacations in desirable locales like Cabo, Maui, and New York. One notable case involved billing Medicare for an injection given to an individual who was incarcerated at the time. Furthermore, Mailyan reportedly billed for over $19 million in treatments on days when her clinic was closed, going so far as to backdate claims to dates prior to any patient’s actual visit.
The Fallout and Implications
The jury’s verdict included not just a conviction for nine counts of wire fraud and three counts of obstructing a federal investigation, but also a declaration that Mailyan’s assets were proceeds of her fraudulent activities. Authorities are set to forfeit luxury items such as a Tesla Model X, a Tesla Cybertruck, and substantial amounts of cash found in her bank accounts.
While federal officials have yet to determine the full extent of patients affected by Mailyan’s deceit, the implications are significant. The Assistant Attorney General of the Justice Department warns that this case should serve as a clear message: those who manipulate their medical expertise for personal gain will be relentlessly pursued and held responsible.
Currently, Dr. Mailyan is in federal custody, awaiting sentencing scheduled for September 10, facing the possibility of 20 years in prison for each count of wire fraud and up to 5 years for obstruction.
