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Monday, December 23, 2024

Spokane dermatologist charged with misusing COVID-19 relief funds

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Merrick B. Garland, Attorney General | https://www.justice.gov/

Merrick B. Garland, Attorney General | https://www.justice.gov/

A Spokane dermatologist, William Philip Werschler, along with his associated businesses, has been indicted by a federal grand jury for allegedly misusing approximately $1.5 million in COVID-19 relief funds. According to Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, Werschler is accused of using these funds to purchase luxury sports cars and real estate and to pay off personal debts.

The indictment claims that Werschler applied for Economic Injury Disaster Loan (EIDL) funds starting in April 2020 through July 2022 for his businesses: Spokane Dermatology Clinic, Premier Clinical Research L.L.C., and 3rd and Sherman Plaza L.L.C. These businesses reportedly received over $2.9 million in EIDL money.

The EIDL program was part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act signed into law on March 27, 2020. It was designed to provide low-interest loans to help small businesses maintain operations during the pandemic shutdowns. The loans were intended as working capital for expenses like payroll and utilities but not for personal use or real estate purchases.

Werschler's alleged misuse includes spending over half of the $575,000 purchase price of a house in Scottsdale, Arizona; buying a 2011 Porsche 911 GT3 for $166,687; purchasing a 1997 Porsche Carrera for $88,687; and paying off a loan of $123,960 for a storage unit used to store vehicles. Additionally, he allegedly paid off a property loan on Grant Street in Spokane with $286,792 and spent $550,000 on two properties near his clinic.

“Many small and local businesses struggled to stay afloat during the COVID-19 pandemic. The Economic Injury Disaster Loan program was designed to provide those business owners an economic lifeline,” stated U.S. Attorney Waldref. “My office has made it a priority to hold fraudsters accountable who used these critical funds to enrich themselves.”

The investigation involved IRS Criminal Investigations, the FBI, and the Small Business Administration Office of Inspector General. Assistant United States Attorney Jeremy J. Kelley is prosecuting the case.

It is important to note that an indictment is merely an allegation at this stage; all defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.

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