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A.G. seeks suspension of Kelty’s medical license

The Corydon OB-GYN under investigation for possible welfare fraud, theft and sexual abuse is again under heat from the Indiana Attorney General’s office.
Dr. Paul Kelty, already under investigation by the IAG, may have his medical license suspended if Attorney General Greg Zoeller has his way.
Zoeller’s office filed a 15-page petition on March 25 with the state’s Medical Licensing Board seeking the removal of Kelty’s license and asks the board to suspend the license for 90 days until Zoeller’s staff can submit a formal complaint.
On Feb. 21, investigators with the IAG and the Harrison County Prosecutor’s Office, accompanied by troopers from the Indiana State Police, temporarily closed Kelty’s office as they served a search warrant with the hopes of finding evidence of alleged Medicaid fraud, theft, prescription drug dealing and sexual abuse.
The IAG’s office should issue a report soon to the Harrison County Prosecutor’s Office, which will decide if criminal charges are applicable.
The IAG is investigating Kelty after being tipped by Corydon pharmacies that he was practicing pain management.
As was noted in last week’s petition, it was learned, as part of the investigation, that Kelty had treated 1,283 patients from 2009 to 2012, writing 31,490 prescriptions that totaled 1.08 million pills.
The petition alleges several instances where controlled substances were initiated and maintained without any evaluation, diagnosis or consideration of underlying conditions. In some cases, the patients continued taking controlled substances even while pregnant.
After one patient delivered her child at Norton Hospital, the infant had to be placed in NICU for approximately 2-1/2 months and required methadone for detoxification.
The petition also includes additional instances of alleged inappropriate conduct by Kelty not included in the search warrant affidavit.
One woman said that after an examination, Kelty would have her go to his private office to obtain her prescription, close his door and pat her leg and rub her back. On one instance, he allegedly asked to see her back scar, then pulled her pants and underwear to her ankles and began massaging her back. He allegedly asked her whether or not she had a boyfriend, if they had sex and then said that he (Kelty) could ‘give her some pointers.’ The patient described the experience as making her feel dirty, ashamed and violated.
Another woman claimed that Kelty began rubbing her legs after he had pulled her pants down for an examination. She said she became agitated and asked why he did that, then asked for her prescriptions so she could leave. The woman stated Kelty refused to give her clonazepam (used to treat seizure or panic disorders) and that he knew she had been kicked out of pain management.
‘At this point, Patient F left his office and returned to her vehicle. She telephoned the office from her car while still in his parking lot and (Kelty) answered the telephone. Patient F stated she yelled at (Kelty) over the telephone about having to pay $80 out of pocket for the visit without getting any meds,’ the petition reads. ‘She threatened to call an attorney … ‘ before Kelty asked her to go back in the office, where he allegedly gave her a cash refund and a prescription for pain medication.
The Harrison County Prosecutor’s Office filed a lawsuit last month for damages, forfeiture of property, seizure of assets and injunctive relief against Kelty.
Court documents say Kelty possesses multiple equity accounts with Hilliard Lyons, with balances and securities exceeding more than $3 million in value. Also, Kelty is believed to have more than $48,000 in a demand deposit account at Republic Bank.
The prosecutor’s office believes the money was obtained through ‘ and that Kelty profited from ‘ possible illegal activity, and the accounts were frozen as part of the investigation.
Two weeks ago Zoeller sought to temporarily suspend the licenses of four Northern Indiana physicians for dangerous prescribing practices and unsafe drug mixes, and last week the Indiana Medical Licensing Board gave a Fort Wayne doctor indefinite probation for a minimum of two years as a result of not following proper protocol when he prescribed addictive narcotics to patients.