SPOKANE, Wash – A federal judge Friday dismissed all charges against Dr. William Werschler, a Spokane dermatologist who was awaiting trial on fraud charges.
The charges were dismissed as part of a settlement agreement to pay back more than $1 million.
Federal prosecutors accused Werschler of using $1.5 million in COVID-19 relief funds for personal use and to buy a home, sports cars and other properties.
Werschler was awaiting trial on 23 counts of fraud and conspiracy.
“According to the settlement agreement, beginning no later than April 2020 and continuing until at least July 2022, Werschler applied for EIDL loans for his businesses: Spokane Dermatology Clinic, Premier Clinical Research, and 3rd and Sherman Plaza L.L.C,” the U.S. Attorney’s Office said in a news release.
“Shortly after receiving EIDL funds, Werschler made personal purchases of a 2011 Porsche 911 GT3 and a 1997 Porsche Carrera for a total of $252,375.00. Werschler also used $553,143 to purchase two properties across from his Spokane Dermatology Clinic. The purchase of personal automobiles and real property are both contrary to the proper use of EIDL funds. The global resolution entered into by Werschler and his companies also resolved related criminal charges.”
“The Parties agree that this Agreement is not an admission of liability by the Defendants, nor is it an admission by the United States that its claims are not well-founded,” the settlement agreement reads.
The defendants agreed to pay $1.4 million, $700,000 of which is restitution.
Werschler’s attorneys say their client maintains his innocence and called the dismissal of the case “extraordinarily rare.”
They blame a former bookkeeper, who was previously sentenced to federal prison for embezzling more than $715,000 from the company.
“This ordeal has been emotionally and professionally devastating for me, my wife, and our employees. We are extremely pleased to put it behind us, and grateful for the support of our friends and colleagues,” Dr. Werschler said in the news release. “Our greatest concern remains for our valued patients as we have tried to reassure them this case has nothing to do with the healthcare they receive at Spokane Dermatology Clinic, and that justice would prevail. We are moving forward, continuing to provide excellent care to those who trust us with their healthcare needs.”
The U.S. Attorney’s office has settled with other people accused of fraud in connection with COVID-19 relief money.
That includes a Kennewick business owner who agreed to paid back $107,534, and a Department of Energy contractor.
“There are many factors that play into how each case will be resolved, but the primary focus for the United States Attorney’s Office is always to reach a resolution that is just and in the best interest of the public,” said a spokesperson for the U.S. Attorney’s Office. “Historically, the Department of Justice, including this office, has entered into global criminal and civil resolutions where appropriate and when consistent with long standing DOJ policy. Today’s settlement restores public funds that were misused during the course of the Covid-19 pandemic, while also recognizing mistakes made by Dr. Werschler and his companies. This global resolution balances a just outcome and need to protect public funds with the unique facts of this matter.”
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