Redding, Calif. Man Arrested on Six Felony Counts of Fraud

April 11, 2002

Investigators with the California Department of Insurance (CDI) Criminal Investigations Branch Fraud Division arrested a Redding man on six felony counts of insurance fraud, six counts of grand theft and one count of conspiracy.

Richard W. Powell, M.D. was arrested at his office and booked into the Shasta County Jail, with bail set at $50,000.

While working a workers’ compensation claimant fraud case, investigators discovered Powell was allegedly committing medical billing fraud. According to investigators, Powell hired a Licensed Vocational Nurse (LVN) and allegedly instructed the LVN to conduct one-on-one therapy sessions with some of Powell’s patients. Powell reportedly billed these sessions to the patients’ insurance company as if he were the one conducting the sessions.

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