Former Physician Sentenced for Medicare Fraud
A federal judge sentenced a psychiatrist to prison for signing fraudulent medical equipment orders.
Updated on Oct. 13, 2026 in Financial Crime
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Judge Paul Barbadoro sentenced 56-year-old psychiatrist Steven Powell to 12 months and one day in federal prison. Powell was ordered to pay $761,202.75 in restitution after facilitating a fraudulent Medicare scheme.
Why it matters
The case highlights the severity of healthcare fraud, where the defendant signed hundreds of medical orders without ever examining the patients involved. By bypassing standard care requirements, the scheme resulted in significant financial losses to federal health programs.
Judge Paul Barbadoro issued a 12-month-and-one-day prison sentence for the psychiatrist. The defendant must pay $761,202.75 in restitution to Medicare.
The players
Steven Powell
He is a 56-year-old psychiatrist who signed fraudulent orders for durable medical equipment.
Paul Barbadoro
He is the federal judge who oversaw the sentencing of the defendant in Concord.
The details
Between December 2018 and March 2019, Powell signed orders for knee, wrist, back, and shoulder braces for over 500 beneficiaries without performing examinations. He processed these pre-populated orders at an extreme pace, once signing 75 pages of documents in just over one minute.
Timeline
December 2018 marked the start of the fraudulent activity.
March 2019 was when the defendant stopped signing the orders.
October 13, 2026, was the date of the sentencing in Concord.
Legal Context
This case follows the enforcement patterns established by the False Claims Act regarding fraudulent billing to federal programs. It reflects a broader judicial trend of targeting the authorization process in schemes involving medical equipment providers.
This case highlights the importance of auditing medical equipment claims to prevent the waste of taxpayer-funded healthcare resources. Residents should review their Medicare Summary Notices for unauthorized equipment orders to ensure personal medical records remain accurate.
The takeaway
Healthcare fraud cases often hinge on the rapid, unverified approval of claims that bypass legitimate patient care. Consumers should always verify that any medical equipment billed to their insurance was actually prescribed after a clinical evaluation.
Further reading
For additional context on how authorities prosecute healthcare abuse, see the Financial Crime section.
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Should medical professionals face stricter oversight to prevent fraudulent billing of taxpayer-funded programs?
