Edited 10/23/2024 to include statements from Dr. William Philip Werschler's attorney, Ronald Van Wert. 

Spokane dermatologist Dr. William Philip Werschler and his businesses have been accused of using $1.5 million in COVID-19 relief funds to purchase sports cars, buy real estate, and pay off personal debt. 

The U.S. Attorney's Office for the Eastern District of Washington announced this morning that a federal grand jury has indicted Werschler and associate businesses on 23 counts of fraud in connection with how Economic Injury Disaster Loan funds were spent. 

Through his attorney, Werschler denies the allegations. 

According to the U.S. Attorney's Office, Werschler received more than $2.9 million in relief funds for Spokane Dermatology Clinic, Premier Clinical Research, and 3rd & Sherman Plaza LLC between April 2020 and July 2022. 

The Indictment alleges that Werschler used those funds for personal purchases, including over half of the $575,000 purchase price of a house in Scottsdale, Arizona; the purchase of a 2011 Porsche 911 GT3 for $166,687; the purchase of a 1997 Porsche Carrera for $88,687; and $123,960 to pay off a loan for a storage unit at 6720 N. Pittsburg Street that was used to store automobiles, jet skis, and a boat. 

According to the indictment, Werschler also allegedly used relief funds to pay off the balance of a loan for property on Grant Street in Spokane for $286,792, and $550,000 to purchase two properties across from his Spokane Dermatology Clinic, both contrary to the proper use of the funds. 

Ronald Van Wert, managing partner of Spokane law firm Etter, McMahon, Lamberson, Van Wert & Oreskovich PC, says in a prepared statement issued on behalf of Werschler that the indictment is based on misinformation provided by a disgruntled bookkeeper. 

A release issued by the U.S. Attorney's Office last November said that Carol Casilla pleaded guilty to wire fraud after stealing more than $715,000 from Spokane Dermatology Clinic while employed there. 

"Dr. Werschler, without exception, denies any wrongdoing as alleged," Van Wert says in the statement. "We are confident that the truth will be revealed, and Dr. Werschler will be exonerated of these unfounded charges."

The EIDL program, formed as one part of the federal Coronavirus Aid, Relief, and Economic Security Act at the onset of the pandemic in 2020, provided low-interest loans to provide “bridge” funding that was meant to enable small businesses to maintain operations during shutdowns and other economic circumstances caused by the pandemic.  

Those loan funds were to be used solely as working capital, such as paying payroll, health insurance premiums, rent, utilities, and fixed debt payments, according to the U.S. Attorney's Office.  EIDL funds weren't to be used for personal purposes or to obtain real property or to pay off debts that weren't yet due and owing, such as paying more than a fixed monthly payment on a mortgage or other loan.