SPOKANE, Wash — A federal grand jury has indicted a Spokane dermatologist for using around $1.5 million in COVID-19 relief funds to buy real estate, sports cars and pay off personal debt.
According to Vanessa Waldref, U.S. Attorney for the Eastern District of Washington, the indictment charges William Philip Werschler, along with his businesses Spokane Dermatology Clinic, Premier Clinical Research LLC and Sherman Plaza LLC with 23 counts of fraud.
"Our investigation followed the use of these funds. We followed the money," Waldref said. "And then how they were spent on unallowed items such as luxury cars, personal properties and investment properties."
The indictment accuses Werschler of using COVID-19 relief loans for personal purchases, which includes the following:
- $575,000 home in Scottsdale, Arizona
- $166,687 2011 Porsche 911 GT3
- $88,687 1997 Porsche Carrera
- $123,960 loan at a storage unit in Spokane
- $286,792 loan for property on Grant Street in Spokane
- $550,000 for two properties across the street from Spokane Dermatology Clinic
The investigation was part of the COVID Fraud Strike Force with Waldref's office, where 15 federal agencies are working together to find pandemic scams and fraudulent use of taxpayer relief. So far, the strike force has caught and charged 35 people; 20 have been criminally convicted so far. The task force has also recovered $30 million across eastern Washington in settlements, seizures, or restitution from these pandemic fraud cases.
The force looked at two years' worth of Werschler's business transactions, wire transfers, and even communications with a bookkeeper labeled only as C.C. in the indictment.
The two often conversed electronically about the SBA (Small Business Administration) loans and requesting more funding; Waldref's office says Werschler received a total $2.9 million in economic relief money.
In one text, C.C. asks Werschler what reason they should provide for an increase "for the sba loan."
Werschler replied, 'Buy more cars?'
C.C. replied, 'I said for payroll, rent and business expenses,' the indictment shows.
Waldref says cases like this can mean forfeiture of assets or even decades in prison.
"Yes. It does," she said. "Wire fraud carries significant sentences of up to 20 years in prison."
Werchler's attorney, Ron Van Wert, declined an interview. In a statement, he said Werschler denies all allegations.
"Dr Werschler is a longstanding, highly respected dermatology expert, locally and internationally, who has advanced the well-being of thousands. The Indictment is not based in fact. It is based on misinformation orchestrated by a disgruntled bookkeeper who embezzled approximately $1 million dollars from the named entities. That bookkeeper pled guilty to felony wire fraud in federal court and faces years in prison under federal sentencing guidelines. She has made false allegations against Dr. Werschler in an attempt to reduce her prison exposure. Dr. Werschler, without exception, denies any wrongdoing as alleged. We are confident that the truth will be revealed and Dr. Werschler will be exonerated of these unfounded charges."
Van Wert identified the bookkeeper as Carol Casilla, who did plead guilty to stealing from the clinic in November 2023.