Not guilty plea entered for Indiana gynecologist accused of Medi - WDRB 41 Louisville News

Harrison County gynecologist accused of Medicaid fraud, sexual abuse pleads not guilty

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Dr. Paul Kelty is charged with sexual battery, Medicaid fraud and possession of a controlled substance. Dr. Paul Kelty is charged with sexual battery, Medicaid fraud and possession of a controlled substance.
Dr. Paul Kelty's office is located in Corydon, Indiana. Agents seized records there in March after patients accused him of sexual abuse. Dr. Paul Kelty's office is located in Corydon, Indiana. Agents seized records there in March after patients accused him of sexual abuse.

CORYDON, Ind. (WDRB) -- He has delivered more than 4,000 babies in 30 years, but now a Corydon, Indiana doctor is accused of violating his patients' trust.

Dr. Paul Kelty today faced a judge, accused of sexually abusing patients, over-prescribing dangerous drugs, and ripping off the government.

During today's hearing Judge Roger Davis entered a not guilty plea on Dr. Kelty's behalf.

Authorities raided Kelty's Corydon office in February, seizing patient records and files.  A 78-page affidavit accuses Kelty of inappropriately touching patients, over-prescribing pain killers such as Hydrocodone, and overbilling Medicaid.

On Thursday afternoon, Kelty turned himself in to face the 21 felony charges.

"Naturally given the nature and allegation of the charges against Dr. Kelty, my office is making prosecution of this matter priority number one," said Harrison Co. Prosecutor Otto Schalk.

"The prosecutor can charge anything he wants to. That's all they are, just charges. We haven't looked at them in detail yet, but we'll address them," said Kelty's attorney Richard Mattox.

Judge Davis agreed to lower Kelty's bond from $200,000 to $15,000.

His attorneys arguing the higher bond was unreasonable, because the court has frozen most of Kelty's more than $3 million in assets.

"The judge was very thorough on it. He listened to both sides. The decision was certainly appropriate under the circumstances," said Mattox.

"At the end of the day, bond does not affect my case. It does not go to the merits of the case," said Schalk.

Kelty's office appeared to be closed today.  He can still practice but only under tight restrictions imposed by the Attorney General and the Medical Licensure Board.

Kelty must have a chaperone present when he sees patients and cannot prescribe most narcotics.

"What I can tell you in the affidavit for the search warrant, it detailed at least six patients of Dr. Kelty that fatally overdosed," said Schalk.

If convicted of all charges, Kelty could spend the rest of his life in prison.

Kelty's trial date is set for Nov. 19, though that will likely be moved, possibly into 2014.

Kelty was released on bond late this afternoon.

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