Indiana Doctor Sentenced to 8 Years for $20M Healthcare Fraud
HAMMOND, IN – A Highland physician who billed for thousands of surgeries she never actually performed has been sentenced to 97 months in federal prison.
Bethany A. Cataldi, 54, of Chesterton, Indiana, learned her fate in a Hammond courtroom after pleading guilty to a massive healthcare fraud scheme. In addition to the eight-year prison term, U.S. District Court Judge Gretchen S. Lund ordered Cataldi to pay back a staggering $19,138,245.43 in restitution.
The $50 Million Deception
As the sole owner of the Center for Otolaryngology and Facial Plastic Surgery, Cataldi specialized in balloon sinuplasty—a procedure used to treat chronic sinus issues. However, federal investigators discovered that Cataldi’s “specialty” was actually fiction.
According to court documents:
- Cataldi submitted claims totaling approximately $50 million for procedures that never happened.
- She successfully pocketed nearly $20 million from Medicare and private insurers.
- Nearly $460,000 of that money was squeezed directly from patients’ pockets in the form of fraudulent co-insurance payments.
Forfeiting a Luxury Lifestyle
The sentence marks a total dismantling of the wealth Cataldi built through fraud. As part of her plea deal, she was forced to forfeit a long list of luxury assets, including:
- High-end jewelry and vehicles.
- Professional musical instruments.
- The contents of multiple bank accounts.
- Real estate holdings purchased with the proceeds of the crime.
A “Profound Breach” of Trust
U.S. Attorney Adam L. Mildred characterized the case as a predatory abuse of the medical profession, noting that many of the victims were senior citizens.
“Doctors who sign up with Medicare and private insurance companies are in a position of trust,” Mildred said. “Bethany Cataldi abused that trust… This sentence reflects that doctors who engage in such outrageous behavior will face significant consequences.”
The FBI and the Department of Health and Human Services (HHS-OIG) emphasized that these types of schemes do more than just steal money—they erode the integrity of the entire healthcare system.
