Spokane dermatologist’s assets seized by IRS after indictment for alleged COVID-19 loan fraud

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SPOKANE, Wash. — ’s assets were seized by the IRS following his indictment for allegedly defrauding the federal government, according to a legal notice issued by the Internal Revenue Service (IRS).

Dr. William Phillip Werschler, 50, a dermatologist practicing in Spokane, is accused of using federal COVID-19 relief funds for personal gain. The IRS seized two luxury vehicles from his property on Oct. 25: a 1997 Porsche Carrera valued at $55,200 and a 2011 Porsche 911 GT3 valued at $132,300. Both vehicles were taken from Werschler’s residence at 2417 North Astor Street in Spokane.

The indictment, which spans 40 pages, alleges that Werschler and others applied for and received multiple Economic Injury Disaster Loans (EIDL) under the federal CARES Act. Prosecutors claim the loans were obtained with the intent to defraud and misuse funds intended for businesses affected by the COVID-19 pandemic. Specifically, the indictment states that Werschler used the proceeds from the loans for personal expenses and to benefit other companies.

The IRS’s legal notice provides instructions on how to file claims and petitions for the return of seized property, with the final date to file being January 25, 2025.

According to Werschler’s lawyers, he is the victim of embezzlement by a bookkeeper.

“While working for the Clinic between May 2020 to March 2023, the bookkeeper embezzled at least $1,025,372.87 from the Clinic and other entities owned by Dr. Werschler,” Werschler’s lawyers said.

Werschler’s lawyers went on to emphasize the claim that not only is he innocent of the improper use of COVID-19 funds, but also that none of the prosecutor’s claims against his practice concern his medical credentials.

“There are no allegations relating to patient care. There are no allegations regarding competency or ability to practice. This all arises from the use of lower interest loans, which the Clinic and other entities have paid on time and without fail,” Werschler’s attorneys said.

It is important to note that an indictment is not a conviction. Werschler, like all defendants, has the constitutional right to a presumption of innocence and the opportunity to defend himself in court. The case is ongoing, and further details are expected as the legal process unfolds.


 

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