Oklahoma chiropractor sentenced in health care fraud scheme

TULSA, Okla. – Dr. Mark Loftis, an Oklahoma business owner and chiropractor, was sentenced 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. According to court documents and evidence presented at trial, Loftis, 39, of Cushing, Okla., 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 more than one 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. “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.”