Owner of DMERx sentenced to jail, ordered to pay restitution 

WASHINGTON – Gary Cox, CEO of Power Mobility Doctor Rx (DMERx), has been sentenced to 15 years in prison and ordered to pay more than $452 million in restitution for conspiring to defraud Medicare and other federal health care benefit programs of more than $1 billion by operating a platform that generated false doctor orders used to support fraudulent claims for various medical items, according to the U.S. Department of Justice (DOJ). “This just sentence is the result of one of the largest telemarketing Medicare fraud cases ever tried to verdict,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Telemedicine scammers who use junk mailers, spam calls and the internet to target senior citizens steal taxpayer money and harm vulnerable populations. The Criminal Division will continue dedicating substantial resources to the fight against telemedicine and medical equipment frauds that drain our health care benefit programs.” According to court documents and evidence presented at trial: 

• Cox and his co-conspirators owned, controlled and operated DMERx, an internet-based platform that generated false and fraudulent doctors' orders for orthotic braces, pain creams and other items. 
• As part of the scheme, Cox connected pharmacies, durable medical equipment (DME) suppliers and marketers with telemedicine companies that would accept illegal kickbacks and bribes in exchange for signed doctors' orders transmitted using the DMERx platform. 
• Cox and his co-conspirators received payments for coordinating these illegal kickback transactions and referring the completed orders to the DME suppliers, pharmacies and telemarketers that paid kickbacks and bribes for the orders. 
• The fraudulent orders generated by DMERx falsely represented that a doctor had examined and treated the Medicare beneficiaries when, in fact, purported telemedicine companies paid doctors to sign the orders without regard to medical necessity, based only on a brief telephone call with the beneficiary or no interaction with the beneficiary at all. 
• The DME suppliers and pharmacies that paid illegal kickbacks in exchange for these doctors’ orders billed Medicare and other insurers more than $1 billion, and Medicare and the insurers paid more than $360 million based on these claims. 
• Cox and his co-conspirators concealed the scheme through sham contracts and by eliminating from doctors’ orders what one co-conspirator described as “dangerous words” that might cause Medicare to audit the scheme’s DME suppliers. 

In June 2025, Cox was convicted of conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, conspiracy to pay and receive health care kickbacks and conspiracy to defraud the United States and make false statements in connection with health care matters.