Update, correction: Greencastle woman part of federal healthcare fraud investigation

The story below was first published July 2, 2025. The corrections in this updated version include the use of the words 'was charged' in the third paragraph. Previously, the story simply stated the verbs 'directed' and 'failed', not showing that the statements were charges by the DOJ.

A Greencastle woman has been charged in what has been labeled as the largest health care fraud investigation in the history of the Department of Justice. 

Catherine Elizabeth Grimes, 66, Greencastle, is one of 11 Indiana residents charged in a national health care fraud takedown, which uncovered fraud incidents totaling more than $14.6 billion and involved doctors, nurses and pharmacists from around the country. 

According to documents from the DOJ, Grimes was charged with obtaining controlled substances by fraud or deceit and failure to make, keep or furnish records. Grimes, a registered nurse, was also charged with diverting medication from her patients, including diazepam, lorazepam, tramadol, phenobarbital and buprenorphine. In addition, she was charged with failure to accurately document the controlled substances being given to her patients while employed at an addiction treatment facility. 

She faces five Level 6 felony charges of obtaining a controlled substance by fraud or deceit and one Level 6 felony count of failure to make, keep or furnish records. 

The crimes allegedly took place between Jan. 1, 2024 and March 31, 2024,  

The case is being prosecuted by Deputy Attorney General Georgeanna Teipen of the Indiana Medicaid Fraud Control Unit. 

Grimes surrendered herself on an open warrant and will appear back in court Aug. 5 for a pretrial conference.