A Spokane, Washington dermatologist and his affiliated companies have agreed to pay $1.4 million to settle allegations they misused federal COVID-19 reduction funds, in line with the U.S. Lawyer’s Workplace.
William Philip Werschler, 66, and his firms—Spokane Dermatology Clinic, Premier Scientific Analysis L.L.C., and third and Sherman Plaza L.L.C.—had been accused of misappropriating Financial Damage Catastrophe Mortgage (EIDL) funds for private bills. The settlement resolves claims beneath the False Claims Act.
The EIDL program, established beneath the CARES Act, offered low-interest loans to assist small companies keep afloat through the pandemic. These funds had been for use just for enterprise bills like payroll, lease, and insurance coverage.
In keeping with the settlement settlement, Werschler started making use of for EIDL loans for his companies in or earlier than April 2020 and continued till no less than 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 had been “opposite to the correct use of EIDL funds.”
The decision additionally addressed associated prison prices, federal prosecutors stated.
The case was investigated by the IRS Prison Investigations, the FBI, and the Small Enterprise Administration Workplace of Inspector Basic.
