Downstate Man Pleads Not Guilty to Scamming Insurance Company

A man accused of scamming an insurance company out of millions of dollars is going to trial.

Paul Smith was a psychologist downstate.

He’s facing federal charges for billing Blue Cross Blue Shield more than $4.5 million for tests he never performed.

Smith is accused of transferring some of that money from his office to a resort he planned on building, called the Swan Resort in Manistee County.

Wednesday he pleaded not guilty to charges of money laundering and health care fraud.

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