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Eureka chiropractor gets 20-month prison sentence for insurance fraud

A wooden judge's gavel rests on a sound block atop a wood surface. At the bottom, the text reads "Courts and Crime" with WGTL 89.1 FM and NPR Network logos.
WGLT
/
Staff

A Eureka chiropractor has been sentenced to 20 months in prison and ordered to pay more than $2.3 million in restitution for Medicare fraud.

A federal jury in Peoria had convicted Carrie Musselman, 48, following a trial in February.

According to the U.S. Attorney’s office Central Illinois district, Musselman stole more than $2.5 million from Medicare and a dozen insurance companies.

Prosecutors say Musselman defrauded the insurers in multiple ways. For example, Musselman submitted fraudulent insurance claims for services that were not performed by medical doctors as claimed, but instead by mid-level providers, resulting in a higher reimbursement.

Musselman also did not provide certain services she claimed for reimbursement, such as allergy injections for patients. According to prosecutors, they were given oral drops which were not approved by the Food and Drug Administration and were considered experimental.

“This case should serve as a warning to anyone who would commit fraud against health insurance,” said Acting United States Attorney Gregory Gilmore. “We will seek out fraud, waste, and abuse and prosecute those who engage in it.”

In handing down the sentence on Tuesday, U.S. District Judge Michael Mihm also determined Musselman committed perjury in her testimony. He said Musselman was aware she was committing fraud and was encouraging the fraud, according to the U.S. Attorney’s Office.

Corrected: June 25, 2025 at 6:06 PM CDT
This story has been corrected to indicate the 20-month sentence.
Eric Stock is the News Director at WGLT. You can contact Eric at ejstoc1@ilstu.edu.