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Doc Faces Charges for Misusing $300K in COVID Relief

— Francis Joseph, MD, spent funds on travel and home improvements, federal prosecutors say

MedpageToday
A close up of a U.S. government stimulus check laying on several out of focus $100 bills

A Colorado physician has been charged with stealing nearly $300,000 from federal COVID-19 relief programs, .

Francis F. Joseph, MD, of Highlands Ranch, allegedly funneled $118,000 in federal funds from one of his medical clinics into his personal bank account -- then spent the money on travel, home improvements, and other things, according to a federal indictment unsealed last week.

Those funds came from the Accelerated and Advance Payments Program and the Provider Relief Fund, established under the CARES Act, prosecutors said.

The indictment also accused Joseph, 56, of applying for a $179,999 loan under the Paycheck Protection Program (PPP) on behalf of that medical practice, which he also directed into his personal bank account, DOJ alleges.

Joseph also allegedly filed for bankruptcy on behalf of the clinic, submitting documents with false statements about his misappropriation of funds, according to the indictment.

He faces four charges: theft in connection with healthcare; theft of government property; wire fraud; and making a false statement in connection with a bankruptcy proceeding.

Joseph, a family medicine physician, will make his first court appearance on May 25. If he's convicted, he faces a maximum penalty of 10 years in prison for each theft count, 20 years for wire fraud, and 5 years for the bankruptcy proceeding false statement.

A , is active and no discipline is listed. The license lists four clinic locations: two in Colorado Springs, one in Pueblo, and one in Denver.

Joseph also listed ownership in three healthcare-related businesses: Springs Medical Associates LLC, Federal Healthcare Inc., and Rocky Mountain Primary Care Pain Management.

Joseph's license lists a 2006 conviction for a "felony or crime of moral turpitude" in Douglas County, Colorado, but further details were unavailable.

This isn't the first time a physician has been accused of misusing federal COVID relief funds. Last June, New York ophthalmologist Ameet Goyal, MD, was charged with taking $630,000 in two PPP loans, when businesses were limited to one loan. Goyal was also ineligible for the loan because of previous criminal charges.

DOJ noted that Joseph's case was the first brought in connection with the Accelerated and Advance Payments Program, and the second set of criminal charges related to the Provider Relief Fund.

The first PRF fraud charges were against a Michigan woman who owned a home health services company. She closed the business in early 2020, the Justice Department said, but still took relief funds and .

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    Kristina Fiore leads ֱ’s enterprise & investigative reporting team. She’s been a medical journalist for more than a decade and her work has been recognized by Barlett & Steele, AHCJ, SABEW, and others. Send story tips to k.fiore@medpagetoday.com.