SPOKANE, Wash. – A Spokane dermatologist and his businesses have agreed to pay $1.4 million in a settlement that addresses allegations of misusing COVID-19 relief funds.
The settlement comes on the heels of a by the government to dismiss the criminal case against Dr. William Philip Werschler, 66.
Werschler was accused of misusing funds obtained through the Economic Injury Disaster Loan (EIDL) program, which was part of the CARES Act, a program designed to support small businesses during the pandemic by providing low-interest loans for operational expenses.
Prosecutors said they were misled when the bookkeeper falsely accused Werschler of complicity to reduce her sentence.
The government agreed to dismiss the charges against Wershcler and settle potential civil claims for $1.4 million, significantly less than the $3.5 million initially cited.
However, the U.S. Attorney’s Office for the Eastern District of Washington said in a release that Werschler used the EIDL funds for personal expenditures including a 2011 Porsche 911 GT3 and a 1997 Porsche Carrera, totaling $252,375. Additionally, he spent $553,143 on properties near his clinic.
These purchases violated the intended use of EIDL funds, which were meant for business-related expenses only, the district said.
For more details, view the settlement agreement here.
