Carrie Musselman, a chiropractor from Eureka, Illinois, has been sentenced to 20 months in prison and ordered to repay over $2.3 million after being found guilty of healthcare fraud and wire fraud. The sentencing took place on June 24, 2025, following a February trial where she was convicted on multiple charges related to defrauding Medicare and other insurance companies.
During the sentencing hearing overseen by Senior U.S. District Judge Michael M. Mihm, evidence was presented showing Musselman's involvement in a fraudulent scheme that resulted in more than $2.5 million being wrongfully obtained from Medicare and other insurers. The fraudulent activities included submitting false insurance claims indicating services were performed by medical doctors instead of mid-level providers to receive unauthorized pay increases.
Musselman also submitted claims for services not rendered, such as falsely asserting patients received allergy injections when they had only been given unapproved oral drops. Additionally, she misrepresented certain services provided to receive undue payments.
Judge Mihm found that Musselman committed perjury during her testimony and noted her awareness and encouragement of the fraudulent acts.
Acting United States Attorney Gregory M. Gilmore commented on the case stating: “This case should serve as a warning to anyone who would commit fraud against health insurance.” He emphasized the prosecution's commitment to addressing fraud within the healthcare system.
Linda T. Hanley from the Department of Health and Human Services Office of Inspector General highlighted the importance of maintaining integrity within federal healthcare systems: “The submission of false claims undermines the integrity of our federal healthcare system.”
Christopher J.S. Johnson from the FBI Springfield Field Office remarked on Musselman's actions: “Bad actors in healthcare... think they can cover up fraud through clouded paperwork,” reinforcing the FBI's dedication to investigating such cases.
The investigation was conducted by both the Department of Health and Human Services' Office of Inspector General and the FBI Springfield Field Office, with Assistant U.S. Attorneys Douglas F. McMeyer, Bryan D. Freres, and Grace J. Hitzeman representing the government at trial.
