Alleged Medicaid fraud, theft, sexual abuse at Corydon doctor's - WDRB 41 Louisville News

Alleged Medicaid fraud, theft, sexual abuse at Corydon doctor's office

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LOUISVILLE, KY. (WDRB) -- A doctor's office in Corydon, Ind. was shut down for several hours on Thursday morning.  That's after allegations of Medicaid fraud, theft, and sexual abuse.

Prosecutors have identified it as the office of Dr. Paul Kelty, an OB-GYN in Corydon.  The Harrison County Prosecutor's Office and Indiana Attorney General's Office are handling the investigation.

"And he said, mom, your doctor has been arrested," say Jennifer Anderson, long-time patient.

Doctor Kelty was not arrested but he is facing some serious charges.  WDRB News has obtained a probable cause affidavit outlining the allegations.  Anderson heard the news from her son.  She was on her way to her appointment at Kelty's office.  She says, "I dearly love Dr. Kelty; he has been a friend...very good to me always."

It all comes as a devastating surprise to Anderson, but not everyone believes the doctor is innocent.

"I could not come back," says Ashley Crawford, former patient.

Crawford says she changed doctors a few years ago after a very uncomfortable visit with doctor Kelty.

"And the whole time he rubbed from my ankle up to the inside of my thigh, and when I left he gave me a hug," says Crawford.

And according to the affidavit, there are more women who allege the same.

Otto Schalk is the Harrions County prosecutor.  He says, "The probable cause affidavit states in explicit detail several cases of inappropriate conduct between doctor Kelty and his patients."

During an interview with investigators, one woman said "Well, he's kind of touchy feely."  She went on to say Doctor Kelty even took her into a back office, had her to take her pants down and rubbed her back, but prosecutors say the investigation started after allegations of fraud.

Schalk says, "This was initially started by the Indiana attorney general's office and their medicaid fraud unit."

Prosecutors say for now, Doctor Kelty should be presumed innocent...and his patients want to know if that will change. 

"I'd like to know if it's true or not," says Anderson.

Police are still going through all of the evidence and have not yet decided exactly what charges Dr. Kelty will face.

Although his office was shut down this morning, he is now free to reopen and continue seeing patients.

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