An Illinois chiropractor has been sentenced to 20 months in federal prison and ordered to repay over $2.3 million after being found guilty of orchestrating a sophisticated fraud scheme targeting Medicare and a dozen private insurance companies. The announcement was made by the U.S. Attorney’s Office for the Central District of Illinois.

Carrie Musselman, 48, of Eureka, Illinois, was sentenced on June 24, following a jury trial that resulted in her conviction on one count of healthcare fraud and five counts of wire fraud. The sentence was handed down by Senior U.S. District Judge Michael M. Mihm in a federal court proceeding that emphasized the extensive financial harm Musselman’s actions inflicted on public and private health insurers.

According to evidence presented by prosecutors, Musselman engaged in a years-long fraudulent billing operation that ultimately resulted in the theft of more than $2.5 million from Medicare and twelve other insurance carriers. Over the course of the conspiracy, Musselman manipulated the billing system to maximize reimbursements from insurers by deliberately misrepresenting the nature of the services provided at her clinic.

Among the core elements of the scheme, Musselman routinely submitted false claims indicating that medical procedures were performed by licensed physicians, when in fact they had been carried out by mid-level providers such as nurse practitioners or physician assistants. These false attributions triggered higher reimbursement rates due to the way medical billing codes are structured—resulting in substantial overpayments that Musselman was not entitled to receive.

In addition, Musselman submitted fraudulent claims for services that were never actually administered to patients. One recurring example involved supposed allergy treatments: she falsely claimed that patients received allergy injections, which are typically reimbursed at a higher rate. In truth, those patients were sent home with oral drops that lacked approval from the U.S. Food and Drug Administration. These oral substances were classified as “experimental” treatments and had not been scientifically validated for efficacy or safety.

The government presented compelling evidence during the sentencing hearing to show that Musselman knowingly and repeatedly exploited the healthcare system for personal financial gain. Prosecutors emphasized that her actions were not the result of clerical errors or isolated incidents, but rather a systematic and deliberate effort to mislead insurers and profit from false claims.

“The submission of false claims undermines the integrity of our federal healthcare system,” said Linda T. Hanley, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “Healthcare professionals who put profit above patient care and honest billing will be held accountable.”

The investigation into Musselman’s activities was jointly conducted by the U.S. Department of Health and Human Services’ Office of Inspector General, Office of Investigations, and the Federal Bureau of Investigation’s Springfield Field Office. Their coordinated efforts led to the successful prosecution of the case.

Assistant U.S. Attorneys Douglas F. McMeyer, Bryan D. Freres, and Grace J. Hitzeman represented the government throughout the trial and sentencing phases. The prosecutors stressed the broader implications of healthcare fraud, noting that such schemes increase costs for taxpayers, undermine trust in the medical profession, and divert resources away from legitimate patient care.

Musselman will serve her 20-month prison sentence in a federal facility, and upon release, will be required to repay more than $2.3 million in restitution to Medicare and the affected insurance providers.