Ex-Doctor Gets 4 Years For Defrauding Pandemic Relief Programs

SEATTLE — A former doctor from Seattle has been sentenced to spend four years behind bars after he was found guilty of trying to scam the federal government out of millions of dollars meant for pandemic relief.

43-year-old Eric R. Shibley was convicted in November of seeking $3.5 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds, the Department of Justice said. According to court documents, Shibley sent in 26 fraudulent PPP applications and 13 EIDL loan applications using the names of businesses that didn't actually do anything, or didn't qualify for COVID-19 relief. His scheme also involved the use of fake tax documents and claiming employees that didn't actually work at his companies.

“As the American people suffered from the negative economic effects of the pandemic, Mr. Shibley chose to further this suffering by stealing funds meant to help small businesses stay afloat,” said Adam Jobes, Assistant Special Agent in Charge, IRS Criminal Investigation, Seattle Field Office. “Contrary to his oath as a physician to cause no harm, Mr. Shibley caused great harm to those around him as he illegally pocketed resources meant for those who actually qualified for and needed those funds."

Shibley was ultimately stripped of his license to practice medicine, convicted of seven counts of wire fraud, three counts of bank fraud, and five counts of money laundering, and ordered to pay $1,438,000 in restitution.

“Mr. Shibley took advantage of the community, disrupted and distraught by the pandemic, to try to enrich himself through fraud,” said U.S. Attorney Nick Brown. “These funds were desperately needed to keep people employed by legitimate small businesses. This fraud made it tougher for those truly in need.”

Now, following Shibley's sentencing Tuesday in the U.S. District Court in Seattle, Shibley will spend four years in prison. According to U.S. District Judge John C. Coughenour, Shibley's prison time accounts for “the blatant nature of [his] fraud and its size” and Shibley's egregious testimony during the trial.

"I have to say it was one of the worst performances of a criminal defendant," Coughenour said. "There was very little willingness to adhere to the truth while testifying.”