California physician convicted in $45M fraud scheme 

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A California physician has been convicted by a federal jury for submitting $45 million in fraudulent Medicare claims for Botox injections that were never provided and obstructing the investigation by altering medical records, the Justice Department said in a May 20 news release.

Violetta Mailyan, MD, of Glendale, owned and operated Healthy Way Medical Center, which purported to provide beauty and cosmetic services. Dr. Mailyan billed Medicare for thousands of Botox injections, which are reimbursable only for documented chronic migraine treatment, while she was on vacation in locations including Cabo, Mexico, and Maui, Hawaii, and for a patient who was incarcerated in federal prison at the time. 

More than $19 million in claims were submitted for injections purportedly provided on days when her clinic was closed. The investigation was initiated after a data analytics team identified Dr. Mailyan as receiving more Medicare payments for Botox injections than any other physician in the United States.

After receiving a grand jury subpoena, Dr. Mailyan altered patient records to make it appear injections had been provided and submitted the falsified documents to federal agents. Evidence at trial showed she used Medicare funds to pay for luxury vacations and collectibles including a $12,000 17th century crossbow.

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