California doctor sentenced to 15 years for $45 million Medicare fraud

Mailyan ran a fraudulent operation through her Healthy Way Medical Center clinic, submitting false claims for Botox treatments. These treatments were either medically unnecessary, purely cosmetic, or never actually performed.

The scheme involved billing Medicare for procedures on days the clinic was closed and while Mailyan was traveling. Evidence showed over $19 million in claims were linked to Botox injections performed on closed days.

Prosecutors detailed instances where Mailyan submitted claims while vacationing in Mexico, Hawaii, Las Vegas, Pennsylvania, and New York. One example included billing over $200,000 for treatments while she was in Cabo.

Medicare covers Botox injections for medically necessary treatments of chronic migraines, but Mailyan allegedly exploited the system by billing for unnecessary cosmetic procedures and treatments without proper patient referrals.

The illicit funds financed a significant spending spree, including a $12,000 antique crossbow, a $3,000 painting, two Tesla vehicles (including a Cybertruck), and five California properties.

The sentencing judge condemned the fraud as “truly breathtaking in scope and shocking in its duration.”

The court ordered the forfeiture of over $16 million in assets, including real estate and securities. Mailyan was also ordered to pay Medicare $32,904,049.41 in restitution.

Mailyan was found guilty of nine counts of wire fraud and three counts of obstruction of a criminal investigation.