Ex COO of Evansville Staffing Agency Lands in Federal Prison for $400K Embezzlement Scheme
EVANSVILLE / Thursday, September 17, 2026 - Heather Rene Armstead, a.k.a. Heather R. Ashley, 52, of Evansville, has been sentenced to four years and nine months in federal prison, followed by three years of supervised release, after pleading guilty to access device fraud, wire fraud, and money laundering. These charges were brought as part of Trump Administration’s Task Force to Eliminate Fraud. Armstead was also ordered to pay $245,007 in restitution.
According to court documents, Armstead exploited her role as Chief Operations Officer of a healthcare staffing agency based in Evansville (“the Agency”) to embezzle more than $400,000 for her personal use. The Agency is responsible for staffing senior living homes in Indiana.
On September 25, 2023, Armstead secretly opened an unauthorized business checking account for the Agency at Middlesex Federal Savings. She then directed Agency customers to deposit payments into that account rather than the company’s legitimate account at Field & Main Bank. Between October and December 2023, approximately $74,781.57 in customer payments was wrongfully deposited into the Middlesex Federal Savings account.
Armstead also secretly obtained financing for the Agency without authorization. When loan proceeds were deposited into the Agency’s Field & Main Bank account, Armstead would quickly transfer the funds to the Middlesex Federal Savings account.
As one example, on October 19, 2023, Armstead submitted a fraudulent merchant capital advance agreement to Blue Ribbon Funding, falsely claiming she was the President of the Agency and had authority to act on its behalf. Blue Ribbon Funding subsequently wired approximately $44,755 into the Agency’s Field & Main Bank account. That same day, Armstead transferred approximately $44,650 into the unauthorized Middlesex Federal Savings account.
Once she had funds in the Middlesex Federal Savings account, Armstead used a debit card linked to the fraudulent account to make personal purchases at multiple retailers, including a jewelry purchase of $2,172.33 at Helzberg Diamonds in Evansville. She also transferred large sums to her personal bank account.
In total, Armstead caused the Agency to suffer an actual loss of $406,140.93. She intended to cause a loss of $506,190.93.
Armstead has prior federal convictions for aggravated identity theft, wire fraud, and mail fraud.
“Ms. Armstead abused her position of trust to steal hundreds of thousands of dollars from a company that relied on her leadership. Her actions were deliberate, deceptive, and financially devastating to an organization responsible for staffing senior living homes and providing elderly with the care they deserve,” said Tom Wheeler, United States Attorney for the Southern District of Indiana. “This sentence holds her accountable for the harm she caused and affirms our commitment to protecting the businesses and caregivers who serve vulnerable populations.”
“Armstead was trusted to help run this company, and she used that position to secretly divert hundreds of thousands of dollars into her own pockets. This wasn’t a mistake or a bad business decision - it was a deliberate scheme. Our investigators followed the money, uncovered the deception, and helped hold her accountable,” said FBI Indianapolis Special Agent in Charge Timothy J. O’Malley.
The Federal Bureau of Investigation Indianapolis Division investigated this case. The sentence was imposed by U.S. District Court Judge Richard L. Young.
U.S. Attorney Wheeler thanked Assistant U.S. Attorney Matthew B. Miller, who prosecuted this case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
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Source: U.S. Attorney's Office, Southern District of Indiana
