Metro Detroit psychologist gets 51 months in prison for $3 million fraud scheme

Paul Smith sentenced for health care fraud, money laundering

An 18-year-old Michigan man has been arrested for sexual assault, police said. (WDIV)

DETROIT – A Metro Detroit psychologist has been sentenced to 51 months in prison for a $3 million health care fraud and money laundering scheme, officials said.

Paul Lucki Smith, 54, was sentenced Tuesday on charges of health care fraud and money laundering, according to U.S. Attorney Matthew Schneider.

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Smith is a psychologist ho practiced for more than 20 years around Metro Detroit, according to authorities.

Officials said Smith would submit claims to Blue Cross Blue Shield of Michigan to be reimbursed for serviced he never provided. In three years, Smith obtained $3,163,172.92 from Blue Cross Blue Shield, according to officials.

Smith used hundreds of thousands of dollars from the scheme to buy property, liquor licenses and furniture, police said. He wanted to become a hotelier in Arcadia, Michigan, officials said.

In addition to his 51-month sentence, Smith has been ordered to forfeit the $3,163,172.92.


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Derick is the Lead Digital Editor for ClickOnDetroit and has been with Local 4 News since April 2013. Derick specializes in breaking news, crime and local sports.