Oklahoma business owner receives 14 years for fraudulent medical equipment billing. An Oklahoma chiropractor and medical supply business owner has been sentenced to 14 years in federal prison for his role in a scheme that sought more than $30 million from government health insurance programs through false claims for medical equipment. The case involved Medicare, TRICARE, and the Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA). Prosecutors said the equipment was sent to people who did not need or want it, while false paperwork was used to seek payment.
The Fraud Operation
Mark Loftis, 39, of Cushing, Oklahoma, received the sentence after a federal jury found him guilty of conspiracy to commit health care fraud and wire fraud. The trial lasted 12 days and ended in July 2026. Along with his prison term, Loftis was ordered to repay more than $8 million to cover losses from the scheme and give up more than $560,000.
Court records and evidence presented at trial showed that Loftis and others operated a medical equipment company called Back Pain Home Supplies LLC, which did business as EZ Medical Supply. Prosecutors said the group concealed information about who owned and managed the company and hid the fact that businesses not enrolled in Medicare were submitting claims through it.
The operation involved medical equipment known as durable medical equipment, which includes items designed for repeated use to support a person’s health or daily needs. The products involved in this case included braces used to support parts of the body, continuous glucose monitors that help track blood sugar levels, and other medical supplies. Such equipment can be useful when prescribed for a real medical need, but prosecutors said many of the items billed through the scheme were unnecessary.
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The false claims added up to more than $30 million, according to federal officials. Medicare and the other government programs paid more than $8 million in response to those claims. In one example presented in the case, the company billed for eight braces for a single person. Prosecutors said the billing practices were part of a wider effort to collect money for products that beneficiaries did not need.
Kickbacks and Fake Orders
Investigators found that Loftis and his associates paid more than $1 million in illegal kickbacks to people and businesses that helped bring in customers. The payments were funneled through a marketing firm that officials labeled a front, as well as other advertising agencies, companies purporting to offer telemedicine services, and a call-center operation. These entities reached out to seniors and people with disabilities, urging them to provide personal details and accept medical equipment they did not actually need.
The fraud also depended on medical orders that were allegedly purchased rather than generated from genuine patient care. Prosecutors said the group bought prescriptions for braces, glucose monitors and similar devices from doctors and nurse practitioners affiliated with telemedicine providers, many of whom had never examined or even spoken with the patients before issuing the orders. Federal officials said schemes involving kickbacks, false medical orders, and the misuse of patient information can drain public funds and weaken trust in health care programs. Payments for fraudulent claims reduce the resources available to legitimate beneficiaries. The case also raised concerns about marketing practices that pressure people to share sensitive personal details without a genuine medical need.
