PEORIA, Ill. – Carrie Musselman, 48, of Eureka, Illinois, was sentenced to 20 months in prison and ordered to pay more than $2.3 million in restitution for her role in a massive Medicare scam.
A federal jury found Musselman, a chiropractor, guilty of one count of healthcare fraud and five counts of wire fraud after a 13-day trial in February 2025. The scheme, which spanned multiple years, netted Musselman more than $2.5 million in fraudulent claims from Medicare and 12 other insurance companies.
The government presented evidence that Musselman submitted false claims indicating that services were performed by medical doctors when they were actually performed by mid-level providers. This resulted in automatic pay increases to which she was not entitled.
Musselman also made claims that falsely asserted patients had received services that were never provided. She submitted claims for allergy injections that were never administered, instead sending patients home with oral drops that were not approved by the FDA and had not been proven to be effective.
Furthermore, Musselman misrepresented services that were provided, again resulting in payments to which she was not entitled. One of her most highly reimbursed services was the placement of an electroacupuncture device, which she falsely billed as a surgically implanted neurostimulator.
At the sentencing hearing, Senior U.S. District Judge Michael M. Mihm found Musselman guilty of perjury, stating that her statements lacked credibility and that she had directed and encouraged the fraud. The judge noted that this case should serve as a warning to healthcare providers who would commit fraud against health insurance.
Acting United States Attorney Gregory M. Gilmore stated that the government will continue to seek out and prosecute those who engage in healthcare fraud. “Providers who take advantage of the trust placed in them to line their own pockets abandon their ethical responsibilities and raise health insurance costs for vulnerable patients,” he said.
The case investigation was conducted by the Department of Health and Human Services, Office of Inspector General, Office of Investigations, and the Federal Bureau of Investigation, Springfield Field Office. Assistant U.S. Attorneys Douglas F. McMeyer, Bryan D. Freres, and Grace J. Hitzeman represented the government at trial.
Linda T. Hanley, Special Agent in Charge with the United States Department of Health and Human Services Office of Inspector General, stated that the submission of false claims undermines the integrity of the federal healthcare system. “We remain committed to holding healthcare providers accountable for complying with Medicare regulations so that enrollees can continue to rely on the program and receive the care they deserve,” she said.
Christopher J.S. Johnson, Special Agent in Charge of the FBI Springfield Field Office, stated that the sentencing and ordered restitution are a testament to the FBI’s commitment to working these types of cases. “Bad actors in healthcare think they can cover up fraud through clouded paperwork and technical healthcare jargon, but we will continue to investigate and prosecute those who commit illegal acts,” he said.
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Key Facts
- State: Illinois
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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