The executive and co-conspirators used fake medical orders and illegal kickbacks to exploit federal healthcare programs
A federal jury has convicted Gary Cox, 79, CEO of Power Mobility Doctor Rx, LLC (DMERx), for orchestrating a large-scale healthcare fraud scheme that defrauded Medicare and other government programs of over $1 billion. Evidence presented in court showed the executive and his co-conspirators used misleading advertisements and offshore call centers to collect personal data from hundreds of thousands of Medicare beneficiaries, then used an online platform to produce fake doctors’ orders for medically unnecessary items like braces and pain creams.
These orders, often approved without proper medical review, were sold to pharmacies and suppliers in exchange for kickbacks, leading to over $360 million in fraudulent Medicare payments.
Cox was found guilty of multiple charges, including healthcare fraud, wire fraud, conspiracy, and paying illegal kickbacks. Federal agencies including the HHS Office of Inspector General, FBI, VA OIG, and Defense Criminal Investigative Service led the investigation.
“Americans are all too familiar with junk mail and spam calls that target seniors to steal their personal information and promote waste, fraud, and abuse in our economy. The Criminal Division will continue to aggressively prosecute health care fraud schemes to hold criminals accountable, protect the vulnerable, and recover financial losses,” said Matthew Galeotti, Head of the Justice Department’s Criminal Division.
As the Lord Leads, Pray with Us…
- For Mr. Galeotti to seek God’s guidance as he heads the DOJ Criminal Division.
- For Attorney General Pamela Bondi to be led by the Lord as she manages the Justice Department.
Sources: Department of Justice
