Carrie Musselman, a chiropractor from Eureka, Illinois, has been sentenced to 20 months in prison and ordered to repay over $2.3 million following her conviction for defrauding Medicare and other insurance companies. The sentencing took place on June 24, 2025, after a jury found Musselman guilty of healthcare fraud and wire fraud charges in February.
During the sentencing hearing, Senior U.S. District Judge Michael M. Mihm reviewed evidence that Musselman engaged in a scheme over several years to fraudulently obtain more than $2.5 million from Medicare and other insurers. The fraudulent claims involved services purportedly performed by medical doctors but actually carried out by mid-level providers, leading to unjustified pay increases for Musselman.
Musselman’s fraudulent activities included submitting false claims for services not provided, such as allergy injections that were never administered. Instead, patients received oral drops deemed “experimental” and unapproved by the Food and Drug Administration.
Additionally, Musselman misrepresented certain services to receive payments she was not entitled to. One example was billing an electroacupuncture device as a surgically implanted neurostimulator, which would not have qualified for payment without her deception.
Judge Mihm also found that Musselman committed perjury during her testimony at trial. He noted that her statements lacked credibility and emphasized her awareness of the fraudulent actions she directed.
Acting United States Attorney Gregory M. Gilmore commented on the case: “This case should serve as a warning to anyone who would commit fraud against health insurance.” He stressed the commitment to prosecuting those who engage in fraud and abuse within the healthcare system.
Linda T. Hanley from the Department of Health and Human Services Office of Inspector General stated: “The submission of false claims undermines the integrity of our federal healthcare system.” She affirmed their dedication to holding healthcare providers accountable under Medicare regulations.
Christopher J.S. Johnson of the FBI Springfield Field Office remarked on the investigation’s thoroughness: “Bad actors in healthcare…think they can cover up fraud through clouded paperwork…if there is a victim, then there will be an agent investigating it.”
The investigation was conducted by multiple agencies including the Department of Health and Human Services’ Office of Inspector General and the FBI’s Springfield Field Office. Assistant U.S. Attorneys Douglas F. McMeyer, Bryan D. Freres, and Grace J. Hitzeman represented the government during trial proceedings.
