Employee Sentenced for Stealing $270,000 from Medical Practice

INDIANAPOLIS – A Westfield, Indiana man was sentenced to 30 months in federal prison for a years-long scheme to defraud the ophthalmology practice where he worked. 

Joshua D. Millspaugh, 42, worked as the practice administrator for Whitson Vision, P.C., with responsibility for payroll processing, purchasing and bill payment. He was paid an annual salary of over $100,000. However, less than a year after starting his employment, Millspaugh began using his access to company accounts to divert money to himself. Over the next five years, through over 500 separate transactions, Millspaugh used company money to make personal purchases, pay personal bills, and send extra payroll checks to his bank account—all of which he concealed with false entries in the company’s books and fictitious justifications when asked about the expenditures. 

Dr. William Whitson, the owner and director of Whitson Vision, advised the Court during the sentencing that the loss suffered by him and his business went beyond the financial damage. He explained how Millspaugh’s crimes resulted in long term credit and banking problems for his company, how it significantly lowered the business reputation of his company, and how it left devastating morale problems with other company employees.

Millspaugh pled guilty to charges of Wire Fraud. In sentencing Millspaugh to 30 months in prison, U.S. District Court Judge James P. Hanlon found that Millspaugh had abused a position of trust within Whitson Vision to perpetrate his crime.

The investigation was conducted by the Indianapolis office of the U.S. Postal Inspection Service.

“Fraud on a small business impacts every area of that business,” said U.S. Attorney Zachary A. Myers. “It also breeds mistrust, especially if the fraud is perpetrated by a trusted employee. Mr. Millspaugh exploited his position of trust for purely personal gain, and he is now being held accountable for his actions.”

“The U.S. Postal Inspection Service will continue to vigorously pursue those who utilize the U.S. Mail to advance their fraud schemes,” said Rodney Hopkins, Inspector in Charge of the Detroit Division. “Crimes of these type bring grave financial and personal hardships to their victims. Criminal misuse of the U.S. Mail will not be tolerated, and our agency will continue to go after those who seek to abuse their positions of trust.”

According to Assistant United States Attorney James M. Warden, who prosecuted the case, Millspaugh was ordered to pay $270,000 in restitution and will be federally supervised for 3 following his release from prison.