Hayden O’Byrne United States Attorney for the Southern District of Florida | The Florida Bar
A federal jury in Miami has found Gary Cox, the CEO of Power Mobility Doctor Rx, LLC (DMERx), guilty of orchestrating a $1 billion fraud scheme targeting Medicare and other federal health care programs. Cox, 79, from Maricopa County, Arizona, was convicted for his role in generating false doctors' orders through DMERx to defraud these programs.
The fraudulent scheme involved obtaining personal information from Medicare beneficiaries who were misled into accepting unnecessary medical items such as orthotic braces and pain creams. According to court documents, Cox and his associates controlled DMERx, an internet-based platform that created fake doctors' orders. These orders falsely indicated that a doctor had examined the beneficiaries when in fact telemedicine companies paid doctors to sign them without proper consultation.
Cox's operation connected pharmacies and durable medical equipment suppliers with telemedicine companies willing to accept kickbacks for signed orders. These entities billed Medicare over $1 billion, receiving payments exceeding $360 million based on fraudulent claims. Evidence showed that Cox used sham contracts to conceal the scheme.
U.S. Attorney Hayden P. O'Byrne stated that "Medicare fraud undermines the integrity of our nation's most critical healthcare programs," adding that such fraud wastes taxpayer dollars and increases healthcare costs.
Matthew R. Galeotti from the Justice Department's Criminal Division highlighted how this massive scheme targeted seniors using misleading communications to promote waste and abuse in the economy.
David Spilker from the Department of Veterans Affairs Office of Inspector General emphasized their commitment to investigating fraud schemes against veterans.
Christian J. Schrank from HHS-OIG condemned Cox for exploiting vulnerable patients by billing for unnecessary equipment and violating public trust in healthcare providers.
Mark McCormick from the FBI Miami Field Office reiterated their dedication to prosecuting those committing healthcare fraud against U.S. taxpayers.
Cox was convicted on multiple charges including conspiracy to commit health care fraud and wire fraud, health care fraud counts, conspiracy related to kickbacks, and making false statements concerning health care matters. He faces up to 20 years for conspiracy charges with additional penalties for other convictions pending sentencing by a federal district court judge.
The case was investigated by HHS-OIG, FBI, VA-OIG, and DCIS with prosecution led by attorneys Darren C. Halverson and Jennifer E. Burns among others from the Criminal Division’s Fraud Section.
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