William Philip Werschler, a Spokane dermatologist, has agreed to pay $1.4 million to settle claims of misusing COVID-19 relief funds. The United States Attorney’s Office announced the resolution involving Werschler and his businesses: Spokane Dermatology Clinic, Premier Clinical Research L.L.C., and 3rd and Sherman Plaza L.L.C.
The case revolves around alleged misuse of funds from the Economic Injury Disaster Loan (EIDL) program, part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This program aimed to provide low-interest loans to help small businesses cope with the economic impact of the pandemic.
According to the settlement agreement, Werschler applied for EIDL loans for his businesses starting in April 2020. However, he reportedly used these funds for personal purchases including two Porsche cars totaling $252,375 and properties near his clinic worth $553,143. These expenditures were not allowed under EIDL guidelines which specified that funds should be used as working capital for business-related expenses.
The investigation was conducted by IRS Criminal Investigations, the FBI, and the Small Business Administration Office of Inspector General.
The settlement also addresses related criminal charges against Werschler and his companies.
