A Miami man is facing Federal charges for allegedly committing fraud in obtaining a Paycheck Protection Program (PPP) loan and an Economic Injury Disaster Loan (EIDL) as well as filing several false claims for Medicare reimbursement and defrauding his patients via his chiropractic clinic.
According to prosecutors, the 63-year-old man orchestrated a plan whereby he charged a credit card program with charges for services not rendered. In order to mask his actions, the defendant allegedly paid other doctors to open credit card merchant accounts in their own names. He also allegedly encouraged his patients, many of whom were economically disadvantaged, to apply for accounts with that card.
The complaint alleges that he used those accounts to make charges for services that were either only partially rendered or were not rendered at all. He also allegedly paid another physician to make claims to Medicare on his behalf because he was not permitted to make them for his chiropractic services. He also allegedly conspired with those doctors to launder the proceeds to hide their tracks.
In addition to the above, Federal prosecutors say he obtained over $200,000 in loans from the PPP and EIDL programs after submitting fraudulent applications for them. He allegedly then transferred the ill-gotten proceeds to shell companies, then to himself for everyday expenses.
The defendant was charged last week with wire fraud, health care fraud, conspiracy to commit health care fraud and wire fraud, making false statements to a financial institution, money laundering, and conspiracy to commit money laundering. He was scheduled to make his first appearance in court on Wednesday.