Slidell, Louisiana – A Slidell woman has been sentenced to 12 months and one day in prison, followed by three years of supervised release, for embezzling over $780,000 in COVID-19 relief funds intended to support healthcare providers during the pandemic. Melissa J. Watson, who operated a primary care clinic, pleaded guilty to theft of public money and was ordered to pay restitution totaling $1,281,818.
According to court documents, Watson submitted false and fraudulent attestations to obtain funds from the Provider Relief Fund (PRF), a COVID-19 pandemic relief program administered by the Health Resources and Services Administration. The PRF was designed to provide financial support to healthcare providers to prevent, prepare for, and respond to the coronavirus, as well as to reimburse them for healthcare-related expenses or lost revenues attributable to the pandemic.
Instead of using the funds for their intended purpose, Watson used the money for personal gain, making numerous cash withdrawals and purchasing luxury items such as real estate, a luxury vehicle, a boat, a trailer, and a timeshare. Her actions were deemed a violation of the trust placed in her as a healthcare provider and a betrayal of the public’s trust in the government’s relief efforts.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Duane A. Evans praised the work of the Federal Bureau of Investigation and the Department of Health and Human Services Office of the Inspector General for their roles in investigating and prosecuting the case.
The case was prosecuted by Trial Attorney Kelly Z. Walters and Assistant Chief Justin Woodard of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Nicholas D. Moses, Healthcare Fraud Coordinator for the Eastern District of Louisiana.