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CEO of Healthcare Software Company Sentenced for $1B Fraud Conspiracy

An Arizona man was sentenced on December 19, 2025, to 15 years in prison and ordered to pay more than $452 million in restitution for conspiring to defraud Medicare and other federal healthcare benefit programs of more than $1 billion by operating a platform that generated false doctors’ orders used to support fraudulent claims for various medical items. According to court documents and evidence presented at trial, Gary Cox, 79, of Maricopa County, was the CEO of Power Mobility Doctor Rx, LLC (DMERx). Cox and his co-conspirators targeted hundreds of thousands of Medicare beneficiaries who provided their personally identifiable information and agreed to accept medically unnecessary orthotic braces, pain creams and other items through misleading mailers, television advertisements and calls from offshore call centers. Cox and his co-conspirators owned, controlled and operated DMERx, an internet-based platform that generated false and fraudulent doctors’ orders for these 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.