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Oklahoma Medical Supply Company Owner Indicted for $30M Healthcare Fraud Scheme

An indictment was unsealed in the Middle District of Florida charging an Oklahoma chiropractor and medical supply company owner for his role in a conspiracy to submit fraudulent claims to multiple federal healthcare programs for orthotic braces and other durable medical equipment (DME), and for the theft of government funds intended to support healthcare providers during the COVID-19 pandemic. According to the indictment, Mark Loftis, 38, of Cushing, Oklahoma, was the owner of a medical supply company called Back Pain Home Supplies LLC, which did business as EZ Medical Supply. As alleged, Loftis paid illegal kickbacks to marketers in exchange for the referral of Medicare patients, and to marketers and telemedicine companies in exchange for signed doctors’ orders that could be used to support claims to healthcare benefit programs. The telemedicine providers did not engage in meaningful evaluation of the patients before signing the orders. In total, Back Pain submitted approximately $30 million in false and fraudulent claims, for which the three healthcare programs paid approximately $8 million.