A federal jury has found Carrie Musselman, a chiropractor from Eureka, Illinois, guilty of defrauding Medicare and other insurance companies out of more than $1.5 million. The verdict includes five counts of wire fraud related to her fraudulent activities. Sentencing is set for June 24, 2025, at the U.S. Courthouse in Peoria.
The prosecution presented evidence over 13 days showing that Musselman engaged in deceptive practices by misrepresenting who provided services and the nature of those services. It was revealed that she falsely claimed services were rendered by physicians when they were actually done by nurse practitioners and physician’s assistants. This misrepresentation led to higher payments for her practice.
Additionally, Musselman billed for procedures not performed, including falsely claiming reimbursement for electroacupuncture as surgically implanted neurostimulators and billing for non-existent allergy injections while sending patients home with unapproved oral drops labeled "experimental."
Musselman remains free on bond pending sentencing. She faces up to 10 years in prison for healthcare fraud and up to 20 years for each wire fraud charge, along with potential fines up to $250,000 per count.
The investigation was conducted by the FBI's Springfield Field Office and the Department of Health and Human Services' Office of Inspector General. Assistant U.S. Attorneys Douglas F. McMeyer, Bryan D. Freres, and Grace J. Hitzeman prosecuted the case.
