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Media Release:

June 20, 2013

Armacost sentenced to nine years for $680,000 stolen from employer

Employee of Greenwood Orthopaedics to serve six years in IDOC for theft

(Indianapolis, Ind.) Marion County Prosecutor Terry Curry announced today that Karen

Armacost was sentenced to nine years for stealing approximately $681,000 from her

employer, Greenwood Orthopaedics, PC. Armacost was ordered to serve six years in the

Indiana Department of Correction and three years of probation.

In a plea agreement entered last month, Armacost pleaded guilty to Theft (Class C Felony),

Forgery (Class C Felony) and Attempt Obtaining a Controlled Substance by Fraud or Deceit(Class D Felony).

An investigation by the Marion County Prosecutors Office Grand Jury Division determined

that from May 2008 to July 2012, Armacost stole a total of $681,665.61 from Greenwood

Orthopaedics while employed as the front office supervisor and accounts payable

coordinator. As part of the plea agreement, Armacost was ordered to repay the total

amount to the company as restitution.

The financial fraud was uncovered by Greenwood Orthopaedics following Armacosts

termination in July 2012 for presenting a forged prescription for Vicodin to Wellspring

Pharmacy on the citys southside. As set forth in the probable cause affidavit, Armacost

admitted to both forging and presenting the prescription.

None of the personal or medical information of Greenwood Orthopaedics patients was

compromised by the conduct of Armacost, and none of the funds taken by her came from

patient funds or impacted the rates patients were charged.

The Marion County Prosecutors Office has placed significant emphasis on prosecuting cases

involving white collar crime, fraud and abuse. Cases recently prosecuted include:

Cheryl Dillon-Britt was recently convicted and sentenced to 12 years for the theft ofmore than $200,000 from the Alpha Tau Omega Foundation.

David Rees, an Indianapolis attorney pleaded guilty to stealing $270,549 from anestate and was sentenced to six years.

Shela Amos was sentenced to 34 years for a scheme in which she led victims tobelieve that they were legitimately purchasing vacant homes that Amos did not own

or have the legal authority to sell.

-more-

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PAGE 2 ARMACOST SENTENCED

Stacy Sheedy, an Indianapolis attorney and accountant, pleaded guilty andsentenced to eight years for stealing approximately $596,000 from guardianship and

family trusts that supported her elderly and disabled clients.

A charge of a crime is merely an accusation, and the defendant is presumed innocent until

and unless proven guilty.

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