CRIME WATCH FOLLOWUP: Former West Seattle doctor sentenced for pandemic-loan fraud

That’s what was hauled out of 4700 36th SW this morning, shortly after this eviction notice went up:

That’s the Triangle office of former physician Eric Shibley, found guilty last November of pandemic-loan fraud. We took the photos after a tip (thank you); as we were starting to research his status, this news release from the U.S. Attorney’s Office arrived:

A former Seattle doctor was sentenced today in U.S. District Court in Seattle to 4 years in prison for fraudulently seeking over $3.5 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds. Eric R. Shibley, 43, of Seattle, was convicted following a trial in November 2021.

At today’s sentencing hearing U.S. District Judge John C. Coughenour said the sentence was due to “the blatant nature of the fraud and its size.” Judge Coughenour also noted Shibley’s decision to testify in the case saying, “I have to say it was one of the worst performances of a criminal defendant. There was very little willingness to adhere to the truth while testifying.”

“Mr. Shibley took advantage of the community, disrupted and distraught by the pandemic, to try to enrich himself through fraud,” said U.S. Attorney Nick Brown. “These funds were desperately needed to keep people employed by legitimate small businesses. This fraud made it tougher for those truly in need.”

According to court documents and evidence presented at trial, Shibley submitted 26 fraudulent PPP applications and 13 EIDL loan applications to federally insured financial institutions, other Small Business Administration (SBA)-approved lenders, and the SBA, in the names of businesses with no actual operations or by misrepresenting the business’s eligibility. In the applications, Shibley misrepresented the number of employees and payroll expenses in several applications and concealed his own criminal history. To support the fraudulent applications, Shibley submitted fake tax documents and the names of purported employees who did not, in fact, work for the businesses for which Shibley claimed they worked. Shibley was convicted by a jury of seven counts of wire fraud, three counts of bank fraud, and five counts of money laundering.

Shibley was ordered to pay $1,438,000 in restitution. Shibley’s license to practice medicine was suspended in 2020.

“As the American people suffered from the negative economic effects of the pandemic, Mr. Shibley chose to further this suffering by stealing funds meant to help small businesses stay afloat,” said Adam Jobes, Assistant Special Agent in Charge, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Contrary to his oath as a physician to cause no harm, Mr. Shibley caused great harm to those around him as he illegally pocketed resources meant for those who actually qualified for and needed those funds. Financial crimes are not victimless, and IRS:CI will continue to investigate and bring to justice those like Mr. Shibley who choose their own greed above the well-being of the public.”

We first reported on the case last July.

WEDNESDAY NIGHT NOTE: We are continuing to try to sort out the specifics behind the eviction notice shown above. Commenters say someone else was living in the building, which county records show Shibley bought in 2015 – though court records show a foreclosure action pending that Shibley himself had initiated.

25 Replies to "CRIME WATCH FOLLOWUP: Former West Seattle doctor sentenced for pandemic-loan fraud"

  • CorkyMD March 8, 2022 (3:02 pm)

    I’m always curious what the West Seattle Blog’s policy is regarding posting pics of the person in cases like this. I’m typically curious what the person looks like and I end up doing a Google search and usually find the pic easily like in this case. It makes me wonder though why the pic of the person isn’t just included in the article. If you could let me know, I’d appreciate it. Thanks!

    • WSB March 8, 2022 (9:03 pm)

      As we’ve explained many times, photos of defendants/suspects are only available:

      -If they’ve served time in the state Department of Corrections (not the county or city systems) – example
      -If they’re a registered sex offender – example
      -If the arrest or a court hearing is photographed – example

      None of those apply in this case. We as a news organization cannot just search the web and use anything that comes up – there are copyright and verification issues. The only exception there is a verifiable government photo of someone (say they’re a city employee and featured on the city website). Again, not applicable here – TR

      • Marco March 8, 2022 (10:25 pm)

        Thanks, TR, very sensible policy.It wouldn’t be the first time a completely innocent person got harassed by “the Internet” due to some mix-up…

      • CorkyMD March 8, 2022 (11:45 pm)

        Now I know! Makes sense. Thank you for the explanation.

    • JOHN BERG March 9, 2022 (10:35 am)


    • Manelli March 9, 2022 (9:18 pm)

      This is not the doctors stuff this is a private citizen stuff who has rented this place and has nothing to do with that doctor and everybody needs to stop thinking they can take his sh-t he’s trying to move out of there he’s the innocent person in this whole situation

      • Karin March 28, 2022 (10:48 pm)

        Did someone really rent the place? There were several people going in and out and 2 dogs left outside with a bag of food. They seemed like squatters to me.

  • IsleWrite March 8, 2022 (3:12 pm)

    Bravo! Now someone go take a smudge stick and cleanse the aura of this building, which I *believe* to be the office we BOOMERS knew as Dr. Herb Carroll’s.  I read many a “Highlights” magazine in that waiting room back in the day as a kid.

    • Peter S. March 8, 2022 (4:26 pm)

      Yup.  Poor Dr. Carroll must be rolling in his grave.  He kindly, compassionately, and expertly served many multi-generational patient families out of this office.  

  • Triangle resident March 8, 2022 (6:14 pm)

    Dr. Douglas Hom also practiced in this building for decades.  A great loss when he had to close his practice due to his own health issues.

    • Mike March 8, 2022 (8:51 pm)

      Scavengers at work tonight, going thru the piles.  Is there a safeguard for patient files?  Are these in a secure facility?  

      • Marco March 8, 2022 (10:23 pm)

        Interesting, some of that is covered by HIPAA, some by State law

  • Sweetiebee March 8, 2022 (10:10 pm)

    Well I can tell you, I’ve met this dude and 4 years in prison is not going to be enough time for him to realize he was at fault.Great work convicting! 

  • Beachcomber March 9, 2022 (6:23 am)

    There were squatters in the building. A family, so be compassionate. Seemingly unrelated to the convicted doctor and his non-sense. 

    • JW March 9, 2022 (12:29 pm)

      Beachcomber: Since you seem to know more about the situation, do you know if there is anything set up to help this family? That big teddy bear is heart breaking.

      • Karin March 28, 2022 (10:51 pm)

        I called animal control on them. No children were there. Just a lot of adults hanging around. I hated driving by there seeing 2 barking dogs with no shelter when they were given every resource possible to help their dogs.

  • Mary Kirk March 9, 2022 (9:14 am)

    All the wonderful doctors who practiced in that building.  All I went to and loved. Dr Herbert Carroll was a fantastic pediatrician.  I went to him as a child and later my own children were treated by him. Then the Hom brothers. Dr. Dennis Hom and Dr. Doug Hom both pcp doctors.  Incredible doctors.  Dennis is retired and unfortunately Doug has passed on. Sorely missed and loved.  This guy was a mental case. He was and still is a disgrace to West Seattle. I went to him once and never again.  Scary dude 

  • Joe sanje March 9, 2022 (10:27 am)

    Wow what a good deal to be paying back only a third of the millions stolen from the paycheck protection program, so he can buy another big house even if it is for a family member or a friend, and if he ever does get out of prison he will have a new home to go to….

    • anonyme March 9, 2022 (11:41 am)

      Joe, you are absolutely right.  He should have to pay back every penny to the taxpayers he robbed, in addition to jail time.  The government does not have its ‘own’ money.  It’s our money.

      • DelridgeMom March 9, 2022 (12:37 pm)

        @Joe Sanje @AnonymeI could be wrong, but I don’ think he actually received the money from the government programs. Just that he lied on applications in an attempt to get money. So, there isn’t money to pay back and therefore all money he’s paying is digging into his personal savings. He’s not benefiting in any way here, thankfully.

  • Rocket March 9, 2022 (10:37 am)

    Glad to see the government is going after crime that affects us all and true predators.

  • UptownJ March 9, 2022 (1:52 pm)

    I went to Dr. Doug for 30 years until he retired.   I tried to use Shibley as a replacement , what a mistake.  After two appointments, I felt like I was being blackmailed.and turned him into the medical board.  He had to refund the money I had paid to him.  5 years later he even tried  to send me to collections for $600 he said I owed him.  Yet another one of his schemes.  He was always on the con and never could play it straight.   I have been following this case and so glad he is going to prison, paying restitution and hopefully will never try to practice medicine again.  

  • Safa Jneidi March 10, 2022 (2:39 am)

    This is so frustrating .I hate the scammers , so sad to see doctor do like job..One of the scammer, scammed me and lost a lot of money by stocks market. No one knows how was painful,  painful and painful. Please catch all the scammer 

  • P Weir March 11, 2022 (2:59 pm)

    I’m wondering who actually owns the building at this point – and who is responsible for cleaning up what’s left after the family who was living there vacated it. They were able to take a bunch of the stuff (I live nearby and spoke with the man involved) but there’s still an awful mess all over the property.  In a search of property tax records, it appears that Dr. Shibley is the owner but I doubt that cleaning up his property will be top of mind for him – especially since it’s been pretty much a mess for quite some time now. How does one go about figuring out such things? Anyone have any ideas???

    • WSB March 11, 2022 (3:39 pm)

      I was not able to read all the cases and documents, and more specifically, the case # on the posted eviction notice does not seem to be valid – or else I’m not reading it correctly (I’ve tried a variety of possibilities). Unless he paid cash for the building, chances are strong there’s a mortgage company out there somewhere and it might come down to them before long. Filing a city complaint is the first step – I checked the file for that address and last time somebody did that was November 2021 – it’s listed as resolved. Also consider contacting the Southwest Precinct city attorney liaison Joe Everett, – nuisance properties are one thing his office specializes in – TR

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