A healthcare executive has just been convicted in a major fraud case that exploited federal health programs.
A federal jury convicted Gary Cox, CEO of Power Mobility Doctor Rx, LLC.
Cox was orchestrating a large-scale healthcare fraud scheme that targeted hundreds of thousands of Medicare beneficiaries.
The scheme generated over $1 billion in false claims.
It centered on the use of a telehealth platform to create fraudulent doctors’ orders for unnecessary medical equipment and prescriptions.
According to evidence presented at trial, Cox and his co-conspirators operated an online platform called DMERx.
The platform was used to produce fake medical orders.
These orders were then used to bill Medicare and other federal health care benefit programs for items such as orthotic braces and pain creams that patients did not need.
Court documents revealed that these products were marketed to elderly patients through deceptive outreach campaigns, with the ultimate goal of securing their Medicare information.
Cox and his associates profited by facilitating illegal kickbacks and bribes between marketers, telemedicine providers, and pharmacies.
Telemedicine companies paid Doctors to sign off on prescriptions and medical equipment orders without conducting proper medical evaluations.
In some instances, the physicians never had any contact with the