CEO of Health Care Software Company Sentenced for $1B Fraud Conspiracy

According to the U.S. Department of Justice, an Arizona man was sentenced on a Friday to 15 years in prison and ordered to pay more than $452 million in restitution for conspiring to defraud Medicare and other federal health care 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.

The case centres on Gary Cox, 79, of Maricopa County, who was the CEO of Power Mobility Doctor Rx, LLC (DMERx), and his co-conspirators, who targeted hundreds of thousands of Medicare beneficiaries with misleading mailers, television adverts and offshore call centres. The fraudulent doctors’ orders generated by DMERx allegedly enabled telemedicine companies to obtain illegal kickbacks and bribes in exchange for signed orders transmitted through the platform.

Medicare and insurers paid more than $360 million based on these claims, with the DME suppliers and pharmacies that paid kickbacks also facing consequences. The Department notes that Cox and his associates used sham contracts and removed “dangerous words” from orders to bypass audits, and that the case involved multiple federal agencies including the FBI and HHS-OIG. Trial proceedings showed Cox was convicted in June 2025 of conspiracy to commit health care fraud and related counts.