INDIANAPOLIS (WISH) - A Franklin mother admitted to stealing hundreds of thousands of dollars from her former employer.
The Marion County probable cause showed invoices that totaled more than $681,000 dollars. That's how much Karen Armacost admitted to stealing from her former employer, Greenwood Orthopaedics.
Armacost was responsible for paying the invoices, but instead she was paying herself.
According to the probable cause Armacost defrauding scheme started in December of 2007. It wasn't until last year, some five years later, when it was uncovered. The probable cause also said Armacost was terminated from her job for forging a prescription and that's when everything started to unfold.
Investigators said Armacost signed a doctor's name to get Vicodin.
"The really tough part is trying to figure out why a woman, the first 46 years of her life never had a traffic ticket would participate in a scheme where she defrauds her employer, the very people that pay her," said Jay Hoffman, Armacost's attorney.
Investigators said part of the money stolen included over 400-thousand dollars for credit card payments. Credit Cards Armacost put in her sons names.
One of her son's, Austin, a reality tv star, told investigators he didn't know how the bills were being paid.
"She has maintained from the very beginning that they never knew anything about it and they thought that it was another source of money that was paying these credit cards," Hoffman said.
Greenwood Orthopaedics released this statement :
The doctors and staff of Greenwood Ortho are deeply saddened by today's events. After discovering Karen's crimes, they worked with the Marion County Prosecutor's Office to ensure that Karen received a sizeable sentence. While this is a significant fraud, patients should rest assured that their funds and personal information were never compromised.
"To find yourself in a situation where you've entrusted somebody to run your business who is stealing from you has to feel horrible; infact, it's awful," Hoffman said.
Karen Armacost had her initial hearing Tuesday afternoon and pleaded guilty to theft, forgery and attempting to obtain a controlled substance by fraud. She's scheduled to be sentenced June 20th.
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