Medical Supply Company Owner Sentenced to 14 Years for $30M Medicare, TRICARE Fraud

TULSA, Oklahoma—An Oklahoma business owner and chiropractor was sentenced to 14 years in prison for his role in a years-long scheme that attempted to bilk Medicare, TRICARE and the civilian health and medical program of the Department of Veterans Affairs (CHAMPVA) out of more than $30 million for orthotic braces, continuous glucose monitors and other durable medical equipment (DME) that beneficiaries did not want or need. 

“Yesterday’s 14-year sentence shows that healthcare fraud does not pay,” said Assistant Attorney General Colin M. McDonald of the Department of Justice’s National Fraud Enforcement Division. “The Department is committed to bringing to justice those who corrupt our healthcare system by paying illegal kickbacks, submitting false claims, deceiving programs that serve our seniors, service members, and veterans and treating sensitive patient information like a commodity to be bought and sold.” 

According to court documents and evidence presented at trial, Mark Loftis, 39, of Cushing, Oklahoma, and his co-conspirators did not disclose to Medicare the ownership and management of the DME company Back Pain Home Supplies LLC dba EZ Medical Supply. Loftis and his co-conspirators hid from Medicare that unenrolled entities were billing claims through the DME company.

Lofits paid over a million dollars in illegal kickbacks, including through a shell marketing company, to marketers, purported telemedicine companies and a call center that persuaded elderly and disabled Americans to disclose their personal information and receive DME they did not need. Loftis and his co-conspirators also purchased sham doctors’ orders for orthotic braces, continuous glucose monitors and DME that were generated by telemedicine doctors and nurse practitioners who never examined, and often never spoke to, the beneficiaries. Loftis and his co-conspirators submitted over $30 million in false and fraudulent claims and were paid over $8 million. Loftis and his co-conspirators frequently billed for multiple orthotic braces at a time, including in one example eight braces for a single beneficiary.

After a 12-day jury trial ending in July 2026, Loftis was convicted of conspiracy to commit healthcare fraud and wire fraud. In addition to the prison sentence, Loftis was ordered to pay over $8 million in restitution and to forfeit over $560,000.  

“Fraud schemes targeting VA programs and services compromise their integrity and divert funds from veterans who rely on these benefits,” said Inspector General Cheryl L. Mason, Department of Veterans Affairs. “The VA OIG works every day with our law enforcement partners to identify fraudsters and hold them accountable.”

The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at justice.gov/criminal-fraud/health-care-fraud-unit.