Medicare $1 Billion Fraud Kingpin Found Guilty in Explosive Case, Faces 20 Years

A federal jury has convicted Gary Cox, CEO of Power Mobility Doctor Rx, LLC, for orchestrating a large-scale health care fraud scheme that exploited federal health care programs and targeted hundreds of thousands of Medicare beneficiaries.

The scheme, which generated over $1 billion in false claims, centered on the use of a telehealth platform to create fraudulent doctors’ orders for unnecessary medical equipment and prescriptions.

According to evidence presented at trial, Cox and his co-conspirators operated an online platform called DMERx, which was used to produce fake medical orders.

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These orders were then used to bill Medicare and other federal health care benefit programs for items such as orthotic braces and pain creams that patients did not need.

Court documents revealed that these products were marketed to elderly patients through deceptive outreach campaigns, with the ultimate goal of securing their Medicare information.

Cox and his associates profited by facilitating illegal kickbacks and bribes between marketers, telemedicine providers, and pharmacies.

Doctors were paid by telemedicine companies to sign off on prescriptions and medical equipment orders without conducting proper medical evaluations.

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In some instances, the physicians never had any contact with the patients at all. In others, approvals followed only brief telephone calls.

“The defendant orchestrated a scheme to defraud government health care benefit programs on a massive scale, creating fraudulent doctors’ orders used to bill insurers over $1 billion,” said Matthew Galeotti, head of the Department of Justice’s Criminal Division.

“Americans are all too familiar with junk mail and spam calls that target seniors to steal their personal information and promote waste, fraud, and abuse in our economy. The Criminal Division will continue to aggressively prosecute health care fraud schemes to hold criminals accountable, protect the vulnerable, and recover financial losses.”

CEO of Health Care Software Company Convicted of $1B Fraud Conspiracy https://t.co/143kh7lXet

— Criminal Division (@DOJCrimDiv) June 3, 2025

Cox was found guilty of multiple charges, including conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, conspiracy to pay and receive kickbacks, conspiracy to defraud the United States, and making false statements related to health care matters. He now faces a maximum sentence of 20 years in prison.

Deputy Inspector General Christian Schrank of the Department of Health and Human Services’ Office of Inspector General (HHS-OIG) emphasized the damage caused by Cox’s actions.

“Gary Cox violated the public trust by billing the government for unnecessary medical equipment and defrauding federal health care programs intended to serve vulnerable populations,” Schrank said.

Investigators discovered that Cox’s company coordinated the creation and sale of fake medical orders through DMERx and similar platforms.

The process included routing patient information through marketers who then shared the data with telemedicine providers.

In return for signing off on the fraudulent orders, physicians were compensated financially, often without ever verifying the medical necessity of the items.

The fraudulent claims submitted to Medicare and other benefit programs were based on documentation that falsely stated patients had been properly evaluated by licensed professionals.

As a result, government programs disbursed hundreds of millions of dollars for products that were either not delivered or not medically required.

The conviction represents one of the largest health care fraud prosecutions in recent years.

The Department of Justice has signaled its continued commitment to pursuing cases that involve the exploitation of federal health care systems and at-risk patients.

Sentencing for Gary Cox will be scheduled at a later date.

The investigation was led by the Department of Justice’s Criminal Division, HHS-OIG, and multiple federal law enforcement partners.

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