Medical Supply Company Owner Convicted of $30M Medicare Fraud Scheme

A federal jury in the Middle District of Florida convicted an Oklahoma business owner and chiropractor yesterday 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 by purchasing patient information, medical practitioners’ signatures, and doctors’ orders for orthotic braces and glucose monitors that patients did not want or need. According to court documents and evidence presented at trial, Mark Loftis, 39, of Cushing, Oklahoma, paid over a million dollars to marketers who worked with call centers to persuade elderly and disabled Americans to provide their personal information, including their health insurance information. Loftis and his co-conspirators then used that information to obtain signed orders for orthotic braces and continuous glucose monitors that were generated by telemedicine doctors and nurse practitioners who never examined, and often never spoke to the patients. Loftis and his co-conspirators used these doctors’ orders to bill federal health care programs. Loftis also concealed a conspirator’s management role in his company and his billing of claims generated by other unenrolled medical suppliers. In total, Loftis obtained over $8 million from the false and fraudulent claims. Loftis continued the scheme for three years despite receiving a steady stream of complaints from beneficiaries and family members of beneficiaries who reported that their elderly parents suffered from dementia and Alzheimer’s disease, making them especially vulnerable to the sales tactics of Loftis’s conspirators. The jury convicted Loftis of conspiracy to commit health care fraud and wire fraud. He is scheduled to be sentenced on October 7, 2026, and faces a maximum penalty of 20 years in prison.