A California physician who fraudulently collected more than $45 million from Medicare and spent the proceeds on luxury properties, expensive vehicles and rare collectibles has been sentenced to 15 years in federal prison, the Justice Department announced Friday.
Violetta Mailyan, 45, was found guilty in May by a Central District of California jury on nine wire-fraud charges and three counts of obstructing a criminal investigation into a health care offense. Prosecutors said she submitted fraudulent Medicare claims for Botox injections that were never administered.
Mailyan, who lives in Glendale, used the money to purchase five California properties and two Tesla vehicles, one of them a Cybertruck.
The case highlights the scale of alleged Medicare fraud as Vice President JD Vance leads a federal task force focused on pursuing those who exploit government health programs.
The DOJ previously said Mailyan owned four properties in Surfside and Glendale with total equity estimated at roughly $7.3 million.
Her spending also included high-end collectibles, among them a 17th-century crossbow valued at $12,000 and a $3,000 painting depicting Ludwig I, the crown prince of Bavaria.
Prosecutors said Mailyan owned and ran Healthy Way Medical Center, a clinic that advertised beauty and cosmetic treatments. The facility submitted claims for thousands of Botox injections that investigators said were never performed.
More than $19 million in claims involved injections allegedly given on dates when the clinic was closed, according to prosecutors.
The fraudulent billing also continued while Mailyan was traveling in Mexico, Hawaii, Las Vegas, Pennsylvania and New York, prosecutors said.
Violetta Mailyan, 45, of Glendale, was sentenced to 15 years in federal prison after being convicted of nine wire-fraud counts and three obstruction charges
A photograph from Mailyan’s phone showed a view of Cabo, Mexico, taken on the same day she billed Medicare $34,560 for services supposedly performed in Glendale
While she was reportedly enjoying time on the beach in Cabo, Mailyan billed more than $200,000 for services she claimed had been provided to California patients.
One image recovered from her phone showed a scenic view of the Mexican resort destination on the same day she submitted a $34,560 Medicare claim for treatment supposedly delivered in Glendale.
Medicare can cover Botox injections when they are medically necessary to treat properly documented chronic migraines.
In Mailyan’s case, however, prosecutors said thousands of injections were either never given or were not administered for qualifying migraine treatment.
Investigators said Mailyan later fabricated medical records in an effort to conceal the scheme as scrutiny intensified.
She also forged the signatures of Medicare beneficiaries, including one man who was incarcerated during the period when she claimed to have treated him.
Mailyan then submitted the falsified documents to federal investigators to create the appearance that she had treated patients she never saw, prosecutors said.
The records were provided after a grand jury subpoena demanded her patients’ medical files, according to the government.
The timing of Mailyan’s transfer to federal custody was not immediately known.
According to prosecutors, Mailyan submitted Medicare claims for injections supposedly administered while she was traveling in Mexico, Hawaii, Las Vegas, New York and Pennsylvania
The doctor purchased two Tesla vehicles, including a Cybertruck, with proceeds from the alleged Medicare fraud scheme
Prosecutors said Medicare data identified Mailyan as an “extreme outlier” among physicians who received reimbursements for Botox treatments.
Her payments were six times higher than those received by the next-largest group of providers, all of whom were neurologists.
In addition to the prison term, Mailyan was ordered to forfeit more than $16 million in assets, including money in bank accounts, personal belongings, real estate and securities.
She must also pay approximately $32.9 million in restitution to Medicare.
Mailyan could have received a maximum sentence of 20 years for each wire-fraud count and up to five years for each of the three obstruction charges.
The Justice Department said its prosecution reflects the administration’s broader effort to combat fraud, including work connected to President Donald Trump’s anti-fraud task force.
Trump launched the task force in March and placed Vance in charge as part of an aggressive campaign against fraud involving government programs.
Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, said in October that a “Chinese mafia” could be coordinating Medicaid fraud through senior-care centers.
Oz sent warning letters to senior centers in Flushing, Queens, amid a multi-agency federal investigation.
In an interview with Fox News Digital, Oz described his visits to Kent Senior Care and Evergreen Adult Day Care as suspicious. He said the alleged operation may involve members of the “Chinese mafia” paying others to help carry out the fraud.
New York Democratic Gov. Kathy Hochul has also pledged a “massive effort to combat fraud and abuse” within the state’s Medicaid system.
Among the luxury items purchased with the proceeds were a $12,000 17th-century crossbow and a $3,000 portrait of Ludwig I, crown prince of Bavaria
Prosecutors said Mailyan created false medical records as investigators closed in on the Medicare billing scheme
Last month, Trump announced a $25 million initiative designed to encourage people to report suspected fraud involving the federal government.
Under the Fraud Whistleblower Incentive Program, the White House said individuals whose tips lead to a fraud conviction or a major federal enforcement action could receive as much as $30,000. The Justice Department will oversee the program.
Trump said the rewards would represent a one percent commission based on the amount of fraud uncovered as a result of the information.
He also said he would determine who receives the money when multiple people claim credit for the same tip.
The president additionally announced last month that more than 20 million seniors would receive one-time Medicare payments of $90.
The payments were intended to help qualifying Medicare Part B enrollees with the cost of their premiums.
Trump said the recipients had been overcharged during the Biden administration through fees used to run HealthCare.gov, leaving the federal government with hundreds of millions of dollars in excess funds.
“That money belongs to hard–working Americans, not the Government, and now, I am returning it to you!” Trump wrote in a letter, CBS News reported.
Our News Outlet contacted Mailyan’s attorneys, Mark Hardiman and Phillip Kanarsh, as well as the DOJ, seeking comment.
