Downstate Man Sentenced for Healthcare Fraud, Money Laundering

The one-time owner of the Swan House and planned Swan Resort in Manistee County will spend years in prison for healthcare fraud and money laundering.

The U.S. Department of Justice says Paul Smith was sentenced to over four years in prison.

Smith is a Psychologist with several clinics in the Detroit area.

The DOJ says he scammed Blue Cross Blue Shield of Michigan out of millions of dollars.

They say he used that money to fund his hotel interests in Manistee County.

As part of the sentence, Smith must give up the licenses and real estate he used the money for.