Highland Physician Sentenced to 97 Months in Prison
Department of Justice, Federal Bureau of Investigation (FBI), Office of the Inspector General, U.S. Attorney's Office, Indiana, Northern. Published February 18, 2026.
Cataldi, sole owner of an otolaryngology practice, billed Medicare and private insurance for thousands of balloon sinuplasty procedures that she did not perform, seeking approximately $50 million and being paid almost $20 million.
Providers named in this release
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1CENTER FOR OTOLARYNGOLOGY AND FACIAL PLASTIC SURGERY, L.L.C.Highland, IN$01BETHANY CATALDIHighland, IN$0HAMMOND- Bethany A. Cataldi, D.O., 54 years old, of Chesterton, Indiana, was sentenced by United States District Court Judge Gretchen S. Lund after pleading guilty to healthcare fraud, announced United States Attorney Adam L.
Mildred. Cataldi was sentenced to 97 months imprisonment, followed by 1 year of supervised release, and ordered to pay $19,138,245.43 in restitution. As part of her plea agreement, Cataldi was required to forfeit significant assets, including jewelry, vehicles, musical instruments, and the contents of a number of bank accounts.
Cataldi also agreed to sell real estate and other luxury assets purchased using the proceeds of her crime in order to fulfill her obligations to repay the fraudulently obtained funds. According to documents in the case, Cataldi to a physician, and the sole owner of the Center for Otolaryngology and Facial Plastic Surgery in Highland, Indiana to billed Medicare and private insurance for thousands of balloon sinuplasty procedures that she did not perform. A balloon sinuplasty is a procedure designed to treat chronic sinusitis by using a small, flexible balloon catheter to widen and drain blocked sinus passages.
Cataldi sought approximately $50,000,000 for these non-existent procedures for which she was actually paid almost $20 million. Approximately $460,000 of the fraudulently obtained funds were paid by individual patients in the form of co-insurance payments. “Doctors who sign up with Medicare and private insurance companies are in a position of trust.
Bethany Cataldi abused that trust to as well as the trust of her patients, many of whom were senior citizens to by filing fraudulent claims. This sentence reflects that doctors who engage in such outrageous behavior will face significant consequences in this District,” said United States Attorney Adam L. Mildred.
“My thanks to our federal law enforcement partners whose excellent and determined work led to the sentence that was handed down today.” “Billing for thousands of procedures that were never performed is a profound breach of the trust placed in medical professionals,” said Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).
“This scheme siphoned millions of dollars from Medicare and private insurers and even targeted individual patients for payment. We remain committed to working with our law enforcement partners to uncover health care fraud and ensure that those who exploit patients and federal programs are held fully accountable.” “Protecting the integrity of our nation’s healthcare system is a top priority for the FBI. Schemes like this erode public trust and siphon critical funding away from legitimate medical providers and patients,” said FBI Indianapolis Special Agent in Charge Timothy J.
O’Malley. “The FBI remains committed to working with our partners to protect public funds and ensure those who commit healthcare fraud face justice.” This case was investigated by the United States Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigations, with assistance from the Food and Drug Administration Office of Criminal Investigations. Assistant United States Attorney Francis Sohn prosecuted the case.