A Spokane chiropractor has pleaded guilty to stealing from an employee welfare benefit plan, the U.S. Department of Labor said Thursday.
Paul L. Schutz, who operates Alpine Family Chiropractic Center on North Division, admitted in U.S. District Court on Tuesday that he billed the Gallo Health Benefit Plan for office visits and treatment for a member-beneficiary that were not provided, the federal agency said.
The benefit plan is covered by the Employees Retirement Income Security Act, a federal law that the Labor Department enforces.
As part of a plea agreement, Schutz was ordered to pay reimbursement of $57,113 to the Labor Department, the state Department of Labor and Industries and various private insurance companies.
He has already paid restitution and civil damages totaling $25,000 to the U.S. Department of Health and Human Services to settle the Medicare aspects of the case.
Schutz also was ordered to pay a $20,000 fine and was placed on probation for three years. During the probation period, Schutz’ billing practices will be under review.
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