INDIANAPOLIS — An Indianapolis nurse is accused of fraud, and WRTV Investigates uncovered it’s not the first time.
Family members are raising questions about the system in place meant to protect patients.
Nurse charged with four felonies related to patient medications
Debbie Armstrong is a licensed nurse of 17 years.
She’s worked in hospitals and nursing homes— most recently at the Waters of Indianapolis on South Keystone Avenue, records show.
Armstrong is accused of diverting drugs meant for patients at the Waters of Indianapolis.
An investigation by the Indiana Attorney General’s Medicaid Fraud Control Unit found Armstrong responsible for 19 discrepancies involving controlled substances like oxycodone and hydrocodone during the period from January 6 to January 17, 2024.
She’s criminally charged with:
- Interference with Medical Services (Level 5 Felony)
- Obtaining a Controlled Substance by Fraud or Deceit (Level 6 Felony)
- Failure to Make, Keep or Furnish Records (Level 6 Felony)
- Furnishing False or Fraudulent Information (Level 6 Felony)
Outside a Marion County courtroom on May 13, Armstrong denied taking medications meant for patients.
“No, I did not,” Armstrong told WRTV Investigates. “I have to investigate this. I have kept my records so I know what I did and didn’t do.”
Court documents allege Armstrong admitted to making what she called “medication errors,” but she firmly denied taking any facility medications for herself, either intentionally or by accident.
Court documents list six nursing home residents as alleged victims, including Linda Gallaty.
“Just shocked”: Daughter reacts to nurse who worked at mom’s facility
Gaye Mladenoff is the daughter of Linda Gallaty, a former resident at the Waters of Indianapolis.
"My mom was one of those people who didn’t go out to the mailbox without her makeup on,” said Mladenoff. “She didn’t like being in a facility, I can tell you that.”
Mladenoff says her mother suffered from anxiety and depression.
“She was taking medications for that, which did keep her a little calmer,” said Mladenoff.
Records show Gallaty was supposed to receive 0.5 mg of Clonazepam for anxiety on January 9, 2024.
Armstrong pulled the pill but noted that “the pill was dropped,” but there was no documentation that she gave another pill to Gallaty.
“I think I was just shocked,” said Mladenoff.
Mladenoff said neither the nursing home nor the state notified her about what happened.
“I found out from you, Kara, you sent me that email,” said Mladenoff. “That was the first I heard of it. Nobody contacted me. I feel like I should have known."
Mladenoff said she visited her mom several times a week at the Waters of Indianapolis.
“I’d bring her the food she likes and things like that,” said Mladenoff.
We shared pictures of Debbie Armstrong with Mladenoff, but she did not recognize the nurse.
Gallaty died on January 29, 2024, from congestive heart failure.
"I sure think anxiety, if it’s not medicated properly, it’s not good for someone who has a heart failure condition,” said Mladenoff. “The stress alone does weigh on your body."
Nurse admitted to license renewal fraud in 2022
WRTV Investigates uncovered that this is not the first time Debbie Armstrong has been accused of fraud.
In 2022, Armstrong admitted to license renewal fraud for making false statements on her application.
She failed to disclose a 2019 arrest for public intoxication, which was still pending at the time she submitted her licensure renewal application in 2020.
Armstrong also failed to disclose that she was terminated from her job in 2019 for absenteeism and not following notice policies.
In 2022, the Indiana State Board of Nursing approved a settlement agreement with the state and Armstrong in which Armstrong agreed to pay a $1,000 fine.
The next year, in 2023, she started working at the Waters of Indianapolis.
“I had to pay a fine, that’s as easy as it gets,” said Armstrong.
She agrees with the State Board of Nursing’s decision to allow her to keep her license.
However, Linda Gallaty’s daughter disagrees.
“No, I don’t think she should have kept her license,” said Mladenoff. “With fraud you shouldn’t be trusted with medications that’s important for someone’s quality of life.”
WRTV Investigates reached out to the State Board of Nursing about the decision.
“The Indiana State Board of Nursing has the authority to impose a fine in an amount not to exceed $1,000 for each violation of law, except for finding of incompetence due to a physical or mental disability,” said Emily Cox, a spokesperson at the Indiana Professional Licensing Agency, who shared the relevant Indiana Code. “The Board’s fines are determined by how many disciplinary counts — violations — the Office of the Attorney General brings against a license or licensee.”
The Indiana Attorney General’s Office is the state agency that brings a complaint before the Indiana State Board of Nursing.
Armstrong’s 2022 settlement also included mitigating circumstances, including that Armstrong completed a five-day rehab program, participates in recovery meetings, and completed a MADD impact panel as part of her pretrial agreement requirements.
WRTV Investigates found the Attorney General’s Office has filed the following administrative complaints in front of the nursing board:
- 2024: 155 total complaints, 27% of which included a charge of engaging in fraud/material deception in order to obtain a license
- 2025: 45 total complaints, 24% of which included a charge of engaging in fraud/material deception in order to obtain a license
“High risk”: Indiana State Nurses Association weighs in
Katie Feley sits in on the Indiana State Board of Nursing meetings.
She’s the chief executive officer at the Indiana State Nurses Association, a professional organization for Indiana’s registered nurses aimed at advocacy and leadership.
Feley said a $1,000 fine is common for renewal fraud, and that some mistakes on licensure applications are unintentional.
She says allegations of drug diversion are one of the top issues brought before the nursing board.
The Indiana State Nurses Association recently aired a podcast about how nurses can get help with addiction.
"They are at high risk because they have access to medications," said Feley.
Feley adds the healthcare industry has numerous measures in place to prevent drug diversion, including electronic scanning and dual signatures.
“So the patient is scanned, and the medication is scanned to make sure they get the right medication,” said Feley. “There are five rights for medication administration. The right patient, the right medication, the right dose, is it given at the right time, and the right route.”
Feley said documentation is really important, especially with narcotics or scheduled medications.
“It’s important to have two nurses signing off on that, so it’s a red flag if there’s a mix-up between the two nurses,” said Feley.
Feley said the state is experiencing a nursing shortage.
She said patients and their family members can ask a hospital, nursing home or healthcare facility to see their medication chart.
Feley said drug diversion is difficult to get away with.
“It’s truly a liability issue for the hospital or the long-term care facility if the patient does not receive the intended medication,” said Feley. “I do believe through the safety measures and the detection process, we do have a good handle on when individuals are diverting. And we do have a good system to get them the help they need, and help them retain their license and keep them in the practice.”
Armstrong says she plans to retire from nursing
WRTV Investigates contacted the Waters of Indianapolis via email and phone, but they never responded.
Records show the Waters of Indianapolis’ Director of Nursing tipped off the Indiana Attorney General’s office about Armstrong in February 2024.
Records show staff found her “standing at the medication cart asleep,” “possibly under the influence,” and “licking her lips and picking at the skin on her face and arms a lot.”
WRTV Investigates asked Armstrong if she plans to continue with nursing.
“No, I’ve retired,” said Armstrong.
Minutes after speaking with WRTV, she told the judge she is out of work and on disability.
A Marion County judge entered a not guilty plea on Armstrong’s behalf on all four charges and set a pretrial conference for July 14 and a jury trial for July 22.
As of now, the Indiana Attorney General’s Office has not filed a new complaint against Armstrong’s nursing license related to the missing medications.
Gaye Mladenoff is watching the criminal case closely, even though it makes the pain of losing her mom even worse.
“I’m not a vindictive person, but I feel justice is justice,” said Mladenoff.
She wants the state to do more to protect our most vulnerable.
“It’s very upsetting,” said Mladenoff. “To think that you would take something from somebody who can’t defend themselves or speak up for themselves.”
