Francis F. Joseph, COVID Relief Program Theft, Colorado 2023

Colorado Physician Charged with Stealing Nearly $300,000 from COVID Relief Programs

Highlands Ranch, CO - A Colorado physician has been charged with stealing nearly $300,000 from three different COVID relief programs, including the Accelerated and Advance Payment Program and the Provider Relief Fund, according to a recent indictment.

The indictment alleges that Francis F. Joseph, 56, of Highlands Ranch, transferred approximately $118,000 in COVID relief funding from a medical clinic's account into his personal bank account and spent the money on various personal expenses, including travel and home improvements.

Joseph is also accused of applying for a $179,999 loan under the Paycheck Protection Program (PPP) on behalf of the medical practice, which he then directed into his personal bank account. Additionally, the indictment alleges that Joseph filed for bankruptcy on behalf of the clinic following his termination and submitted documents containing materially false statements regarding his misappropriation of funds from the clinic in connection with that proceeding.

The Provider Relief Fund, through which $50 billion was allocated to providers for the coronavirus response, was part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 29, 2020, and designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.

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. He faces maximum penalties of 10 years in prison for each theft count, 20 years for wire fraud, and five years for the bankruptcy proceeding false statement.

Joseph is scheduled to make his initial court appearance on May 25 before U.S. Magistrate Judge S. Kato Crews of the U.S. District Court for the District of Colorado. If convicted, he could face significant prison time and fines, in addition to the potential financial penalties he has already incurred.

Acting Assistant Attorney General Nicholas L. McQuaid, Trial Attorney Emily Gurskis, Special Agent in Charge Curt Muller of the U.S. Department of Health and Human Services' Office of Inspector General's Kansas City Region, and Special Agent in Charge Weston King of the U.S. Small Business Administration's Office of Inspector General's Western Region made the announcement. The case is being prosecuted by the Justice Department's Fraud Section.

Source: https://www.justice.gov/archives/opa/pr/colorado-physician-charged-misappropriating-thousands-three-different-covid-relief-programs