Indiana Woman Sentenced to Nearly 8 Years for $22M Healthcare Fraud

Bethany A. Cataldi pleaded guilty to billing for procedures that were never performed.

Published on Feb. 24, 2026

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A former otolaryngologist from Highland, Indiana has been sentenced to 97 months in federal prison for a healthcare fraud scheme that involved billing approximately $22 million for balloon sinuplasty procedures that were never actually performed. Bethany A. Cataldi, 54, pleaded guilty to the charges and was also ordered to pay $19.1 million in restitution.

Why it matters

This case highlights the vulnerabilities within the healthcare system and the potential for abuse by unscrupulous medical providers. The substantial financial penalty and prison sentence underscore the government's commitment to prosecuting healthcare fraud and recovering fraudulently obtained funds.

The details

Cataldi admitted to submitting fraudulent claims to Medicare and insurance companies for balloon sinuplasty procedures that were never performed at her practice, the Center for Otolaryngology and Facial Plastic Surgery. Investigators found that at least eight patients confirmed their scheduled operations never took place, even though Cataldi's practice billed for over 1,800 such procedures totaling $22 million, of which $16.5 million was billed to Medicaid and $9 million was reimbursed.

  • From March 2015 to December 2023, Cataldi carried out the fraudulent scheme.
  • On February 18, 2026, Cataldi was sentenced to 97 months in federal prison.

The players

Bethany A. Cataldi

A 54-year-old former otolaryngologist from Highland, Indiana who pleaded guilty to healthcare fraud.

Adam L. Mildred

The U.S. Attorney for the Northern District of Indiana who announced Cataldi's sentencing and restitution order.

Gretchen S. Lund

The U.S. District Judge who presided over Cataldi's case and delivered the 97-month prison sentence.

Francis Sohn

The Assistant United States Attorney who led the prosecution against Cataldi.

Department of Health and Human Services Office of Inspector General (HHS-OIG)

The agency that investigated the case against Cataldi.

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What they’re saying

“This sentence reflects that doctors who engage in such outrageous behavior will face significant consequences in this District.”

— Adam L. Mildred, U.S. Attorney, Northern District of Indiana (Press Release)

What’s next

The focus will be on the complete restitution of the $19.1 million owed by Cataldi, as she is required to sell real estate and other luxury assets acquired with the proceeds of the fraud. Authorities will also continue efforts to prevent similar instances of healthcare fraud in the future.

The takeaway

This case serves as a stark reminder of the importance of integrity within the healthcare system. The substantial financial penalty and prison sentence handed down to Cataldi underscore the government's commitment to aggressively prosecuting healthcare fraud and recovering fraudulently obtained funds to protect patients and taxpayers.