DMERx CEO convicted in $1B fraud scheme

WASHINGTON – Federal authorities have convicted Gary Cox, 79, CEO of Power Mobility Doctor Rx (DMERx), for orchestrating a $1 billion Medicare fraud scheme involving false doctor orders for medically unnecessary equipment like braces and treatments. Cox and his co-conspirators misled seniors into providing personal information through deceptive advertising and offshore call centers, then used DMERx—a digital platform—to create fraudulent prescriptions. These orders were exchanged for illegal kickbacks from pharmacies, DME suppliers and telemedicine providers. The fraudulent prescriptions falsely claimed doctors had examined patients, when in reality, physicians were paid to approve orders without proper evaluation. Cox and his team hid the scheme using sham contracts and doctored language to avoid scrutiny. Medicare and other insurers paid more than $360 million based on these fraudulent claims. “The defendant orchestrated a scheme to defraud government health care benefit programs on a massive scale, creating fraudulent doctors’ orders used to bill insurers over $1 billion,” said Matthew R. Galeotti, head of the Justice Department’s Criminal Division. “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.” Cox was convicted on multiple charges, including conspiracy to commit health care fraud, wire fraud, and receiving kickbacks. He faces up to 20 years in prison for the most serious charge, with sentencing scheduled at a later date.