Nurse Practitioner Jailed for $11.2M Disability Fraud Scheme Discharging Student Loans

Catherine Seemer, a 44-year-old nurse practitioner from Elmsford, New York, has been sentenced to five years in prison for orchestrating a massive disability loan fraud scheme. The sentencing, announced by Danielle R. Sassoon, the United States Attorney for the Southern District of New York, marks the culmination of a complex investigation into a fraud that spanned nearly five years and resulted in the wrongful discharge of over $11.2 million in student loans.

The Mechanics of a Multi-Million-Dollar Fraud

From June 2017 through March 2022, Seemer executed an elaborate scheme that exploited both federal and private disability discharge programs.

• She targeted over 125 borrowers, convincing them that they qualified for various forms of student loan relief when, in fact, they did not meet the necessary criteria.
• Seemer charged these unsuspecting individuals fees ranging from 10% to 20% of their loan amounts to facilitate what they believed to be a legitimate loan discharge process.
• The crux of Seemer's fraud involved the misuse of personal identifying information from the borrowers to submit fraudulent applications for student loan discharge.
• These applications falsely claimed permanent physical and mental disabilities that did not exist.
• To lend credibility to these false claims, Seemer went to extraordinary lengths, stealing the identities of over a dozen medical doctors.

Identity Theft and Forgery

According to the DOJ, Seemer stole the identities, medical license numbers, and signatures of 12 medical doctors. She used this stolen information to create falsified medical diagnoses and disability certifications, which were then submitted in support of the fraudulent loan discharge applications.

This level of identity theft and forgery not only violated the trust placed in healthcare professionals but also undermined the integrity of the disability discharge programs designed to help those truly in need.

The Impact and Consequences of the Fraud

The scale of Seemer's fraud is staggering. Over the course of nearly five years, her actions resulted in the wrongful discharge of approximately $11.2 million in loans under disability-based relief programs. This not only defrauded the loan programs but also potentially deprived genuinely disabled individuals of resources they might have needed.

As a result of her actions, Seemer has been sentenced to five years in prison, followed by three years of supervised release. Additionally, she has been ordered to pay $635,352 in restitution. This sentence reflects the severity of her crimes and the significant financial impact of her fraudulent activities.

As the healthcare industry continues to evolve, cases like this underscore the ongoing need for integrity and accountability at all levels of patient care and professional practice.

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