Colorado Physician Indicted for Stealing $300,000 in COVID-19 Relief Funds & Filing Fraudulent Bankruptcy Papers for Clinic That Fired Him
A Highland Ranch, Colorado, doctor was charged with stealing COVID-19 government funds and more in an indictment unsealed on April 6 in Denver. The accused physician, Francis F. Joseph, 56, allegedly stole COVID-19 relief funds from three separate federal programs while allegedly lying in statements about bankruptcy proceedings.
Much of the misappropriation of about $300,000 in funds earmarked for COVID-19 relief were allegedly spent on personal items such as travel, home improvements, and more. Before his termination in April 2020, Joseph ran Springs Medical Associates in Colorado Springs until late January 2020. The indictment states he was terminated "because he misappropriated and took for himself funds that were provided to Springs Medical by various government agencies for the purpose of treating patients who were suffering from COVID-19."
Court documents state the doctor transferred about $118,000 in COVID-19 relief money from his medical practice bank account into his personal bank account.
Court documents show Joseph is charged with "theft in connection with health care, theft of government property, wire fraud, and making a false statement in connection with a bankruptcy proceeding."
"The stolen funds came from two programs that were designed to aid medical providers during the COVID-19 pandemic — the Accelerated and Advance Payment Program and the Provider Relief Fund," read the court documents.
The federal initiative, The Accelerated and Advance Payment Program, specifically provides vital funds during national emergencies such as the Pandemic to Medicare providers. These federal payments, called The Provider Relief Fund, are strictly required to be used for cash flow for any Medicare providers during a national emergency, such as the Pandemic.
The Provider Relief Fund is part of the Coronavirus Aid, Relief, and Economic Security (CARES) and has provided $50 billion to hard-hit Medicare providers, including physicians' offices plus others. The CARES Act was launched at the beginning of the Pandemic in March 2020 to give millions of Americans much-needed funds during the massive shutdowns and period of isolation due to social distancing.
Today's indictment constitutes the nation's second set of criminal charges related to the misuse of Provider Relief Fund money and is the first time that charges have been brought in connection with fraud on the Accelerated and Advance Payment Program.
Court documents state Joseph, after being fired from the clinic, applied to the Paycheck Protection Program (PPP) for a $179,000 loan in the name of the medical clinic he was no longer working for at the time. Without the practice's knowledge, Joseph successfully received a PPP loan and then transferred the sum to his bank account.
Joseph then allegedly continued to falsify his ownership of the medical clinic after his termination and filed for the practice's bankruptcy.
Court papers show evidence against Joseph, in this case, includes "materially false statements regarding his misappropriation of funds from the clinic in connection with that proceeding."
The accused doctor will be in court on May 25 before U.S. Magistrate Judge S. Kato Crews of the U.S. District Court for the District of Colorado.
Joseph faces a maximum of ten years in prison for each theft count, five years for bankruptcy proceed false statement, and twenty years for wire fraud, if he is convicted on all charges.
The Department of Justice thanked numerous agencies for their assistance in this case, including the U.S. Attorney's Office for the District of Colorado and the Colorado State Medicaid Fraud Control Unit.
Due to the surge of crime during the Pandemic, the federal government worked within "The Fraud Section," which leads the Medicare Fraud Strike Force. The Medicare Strike Force operates fifteen different strike forces within twenty-four districts and has successfully charged over 4,200 defendants in Medicare fraud.
In total, the Medicare Strike Force has uncovered $19 billion by physicians and others for fraudulent Medicare billing.
