Fraud round up: Brace fraud schemes in Oklahoma, Florida
By HME News Staff
Updated 9:36 AM CST, Tue January 13, 2026
Oklahoma DME owner indicted in $30M fraud scheme: An Oklahoma chiropractor and owner of Back Pain Home Supplies LLC, doing business as EZ Medical Supply, has been indicted for allegedly orchestrating a $30 million health care fraud scheme. Prosecutors say Mark Loftis paid kickbacks for patient referrals and submitted false claims to Medicare, TRICARE and CHAMPVA for unnecessary orthotic braces and other equipment, resulting in about $8 million in improper payments. Loftis also allegedly misused more than $133,000 in CARES Act funds. He faces charges that include conspiracy to commit health care and wire fraud, kickback violations and theft of government property, carrying potential sentences of up to 20 years.
Two executives convicted in $34M Medicare Advantage fraud: A Miami federal jury has convicted two health care executives for exploiting elderly Medicare Advantage beneficiaries in a $34 million fraud scheme. Michael Kochen, 42, and Sandro Herek, 56, used overseas call centers to pressure seniors into accepting unnecessary orthopedic braces, leading to more than $17 million in false claims. Both were found guilty of conspiracy to commit health care and wire fraud, health care fraud and kickback violations. They face up to 20 years for conspiracy and 10 years per fraud count. Sentencing is scheduled for March 25.
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