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

An Oklahoma business owner and chiropractor was sentenced yesterday 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 over $30 million for orthotics braces, continuous glucose monitors, and other durable medical equipment (DME) that beneficiaries did not want or need.

"Yesterday's 14-year sentence shows that health care 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 health care 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."

"Fraud against federal health care programs is a direct attack on the public's trust and on the vulnerable individuals these programs are meant to protect, and the jury's verdict and sentencing of Mark Loftis demonstrate that schemes of this kind will be met with decisive action and significant consequences," said Acting Deputy Inspector General for Investigations Miranda L. Bennett of the U.S. Department of Health and Human Services, Office of Inspector General. "HHS-OIG will not hesitate to investigate and dismantle criminal conduct wherever it threatens the integrity of federal programs, and this case reflects the unwavering commitment of our agency and our law-enforcement partners to safeguard taxpayer dollars and ensure that those who defraud the government are held fully accountable."

"Healthcare fraud drains millions of dollars from federally funded programs, and we all pay the price," said Special Agent in Charge Rodney Crawford of the FBI Tampa Field Office. "Today's sentence underscores the FBI's steadfast commitment to aggressively pursuing those who engage in kickback schemes and other fraudulent practices."

"As the law enforcement arm of the Department of Defense Office of Inspector General, the Defense Criminal Investigative Service (DCIS) is committed to safeguarding the integrity of the TRICARE program," said Acting Special Agent in Charge Nakia M. Alexander of the DCIS Southeast Field Office. "This investigation is an example of a healthcare fraud scheme that directly affected American service members and their families. I applaud the collaborative work of the investigative agencies and the Department of Justice that led to today's sentencing."

"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."

According to court documents and evidence presented at trial, Dr. 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 health care 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.

HHS-OIG, FBI, DCIS, and VA-OIG investigated the case.

Assistant Deputy Chief Catherine Wagner and Trial Attorney Raymond Beckering III of the National Fraud Enforcement Division's Health Care Fraud Section prosecuted the case.

On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on 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.

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 https://www.justice.gov/criminal-fraud/health-care-fraud-unit.