A Spokane, Washington dermatologist and his affiliated companies have agreed to pay $1.4 million to settle allegations they misused federal COVID-19 aid funds, based on the U.S. Legal professional’s Workplace.
William Philip Werschler, 66, and his corporations—Spokane Dermatology Clinic, Premier Medical Analysis L.L.C., and third and Sherman Plaza L.L.C.—have been accused of misappropriating Financial Harm Catastrophe Mortgage (EIDL) funds for private bills. The settlement resolves claims underneath the False Claims Act.
The EIDL program, established underneath the CARES Act, offered low-interest loans to assist small companies keep afloat in the course of the pandemic. These funds have been for use just for enterprise bills like payroll, hire, and insurance coverage.
In line with the settlement settlement, Werschler started making use of for EIDL loans for his companies in or earlier than April 2020 and continued till at the very least July 2022.
Shortly after receiving EIDL funds, Werschler allegedly spent $252,375 on two private automobiles—a 2011 Porsche 911 GT3 and a 1997 Porsche Carrera. He additionally used $553,143 to purchase two properties close to his dermatology clinic. The press launch states these purchases have been “opposite to the correct use of EIDL funds.”
The decision additionally addressed associated legal costs, federal prosecutors mentioned.
The case was investigated by the IRS Felony Investigations, the FBI, and the Small Enterprise Administration Workplace of Inspector Basic.
