Miami CEO Receives 15-Year Sentence in Major Health Care Fraud Case

A 79-year-old former CEO of a health care software company has been sentenced to 15 years in prison after being convicted of orchestrating a massive fraud scheme exceeding $1 billion. This fraudulent activity involved falsely billing Medicare for durable medical equipment and other related items.

Gary Cox, who previously resided in Arizona, was found guilty in June by a federal jury in Miami. Last week, a judge handed down a sentence that aligned with the prosecution’s request—substantial yet considerate of his age. Although he could have faced a maximum of 20 years, the sentence reflects a balance between justice and his advanced years.

According to a U.S. Attorney’s statement in the sentencing memorandum, “Cox and his coconspirators orchestrated one of the largest health care frauds in our nation.” The memorandum emphasized the need for a significant sentence to underscore the seriousness of these crimes, especially as health care fraud continues to rise across the country.

Cox was at the helm of Power Mobility Doctor Rx, a company that targeted Medicare beneficiaries through deceptive mailers, advertisements, and phone calls originating from offshore locations, as noted by the U.S. Department of Justice. He and his co-conspirators facilitated connections between pharmacies, durable medical equipment manufacturers, and telemedicine companies that accepted kickbacks for signed doctors’ orders, utilizing the online platform developed by his company.

The illegal kickback transactions allowed Cox and his associates to receive payments for coordinating these activities, referring completed doctors’ orders to the DME suppliers, pharmacies, and telemarketers that engaged in paying bribes for the orders. This elaborate scheme resulted in significant financial losses for Medicare and other insurance providers.

Among Cox’s co-conspirators, Gregory Schreck from Kansas pleaded guilty in February but has yet to be sentenced. Another associate, Brett Blackman, also entered a guilty plea this year. All individuals involved were indicted in 2023.

This billing scheme is just one example of the numerous fraudulent activities targeting insurers, including auto insurance companies in Florida, New York, and other states. Insurance attorneys have reported that these insurers are often billed for unnecessary or unused medical treatments, equipment, and medications. Read more here.

The sentencing memo for Cox can be accessed here.

Topics
Fraud

A 79-year-old former CEO of a health care software company has been sentenced to 15 years in prison after being convicted of orchestrating a massive fraud scheme exceeding $1 billion. This fraudulent activity involved falsely billing Medicare for durable medical equipment and other related items.

Gary Cox, who previously resided in Arizona, was found guilty in June by a federal jury in Miami. Last week, a judge handed down a sentence that aligned with the prosecution’s request—substantial yet considerate of his age. Although he could have faced a maximum of 20 years, the sentence reflects a balance between justice and his advanced years.

According to a U.S. Attorney’s statement in the sentencing memorandum, “Cox and his coconspirators orchestrated one of the largest health care frauds in our nation.” The memorandum emphasized the need for a significant sentence to underscore the seriousness of these crimes, especially as health care fraud continues to rise across the country.

Cox was at the helm of Power Mobility Doctor Rx, a company that targeted Medicare beneficiaries through deceptive mailers, advertisements, and phone calls originating from offshore locations, as noted by the U.S. Department of Justice. He and his co-conspirators facilitated connections between pharmacies, durable medical equipment manufacturers, and telemedicine companies that accepted kickbacks for signed doctors’ orders, utilizing the online platform developed by his company.

The illegal kickback transactions allowed Cox and his associates to receive payments for coordinating these activities, referring completed doctors’ orders to the DME suppliers, pharmacies, and telemarketers that engaged in paying bribes for the orders. This elaborate scheme resulted in significant financial losses for Medicare and other insurance providers.

Among Cox’s co-conspirators, Gregory Schreck from Kansas pleaded guilty in February but has yet to be sentenced. Another associate, Brett Blackman, also entered a guilty plea this year. All individuals involved were indicted in 2023.

This billing scheme is just one example of the numerous fraudulent activities targeting insurers, including auto insurance companies in Florida, New York, and other states. Insurance attorneys have reported that these insurers are often billed for unnecessary or unused medical treatments, equipment, and medications. Read more here.

The sentencing memo for Cox can be accessed here.

Topics
Fraud