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 was delivered late Friday evening in Peoria, Illinois. Musselman was also convicted on five counts of wire fraud related to her fraudulent activities.
The trial spanned 13 days, during which the government presented evidence showing that Musselman engaged in deceptive practices to manipulate insurance claims. She misrepresented the identity of service providers and the nature of services rendered at her practice. Specifically, she falsely claimed that services were provided by physicians when they were actually performed by nurse practitioners and physician assistants. This misrepresentation led to increased payments for her practice.
One significant aspect of the fraud involved billing for electroacupuncture as if it were a surgically implanted neurostimulator, which would not have qualified for payment without deception. Additionally, Musselman billed for services never rendered, including non-existent neurostimulators and allergy injections. Instead of providing injections, patients received unapproved oral drops deemed "experimental" by the Food and Drug Administration.
Musselman remains free on bond until her sentencing scheduled for June 24, 2025, at the U.S. Courthouse in Peoria. She faces up to 10 years in prison for healthcare fraud and up to 20 years for each wire fraud charge. Each conviction could also result in fines up to $250,000 and three years of supervised release.
The investigation was carried out by the Federal Bureau of Investigation's Springfield Field Office and the Department of Health and Human Services' Office of Inspector General's Office of Investigations. Assistant U.S. Attorneys Douglas F. McMeyer, Bryan D. Freres, and Grace J. Hitzeman represented the government during the trial.