Mark Loftis, a 39-year-old Oklahoma business owner and chiropractor from Cushing, Oklahoma, was sentenced to 14 years in prison for his role in a scheme to defraud Medicare, TRICARE, and the Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA). According to the U.S. Department of Justice (DOJ), Loftis and his co-conspirators submitted more than $30 million in fraudulent claims for orthotic braces, continuous glucose monitors, and other durable medical equipment (DME) that beneficiaries did not want or need. The schemes resulted in more than $8 million in payments. Loftis was also ordered to pay over $8 million in restitution and forfeit more than $560,000 following his conviction for conspiracy to commit health care fraud and wire fraud.
Key Details of the Health Care Fraud Case
| Case detail | Information |
|---|---|
| Defendant | Mark Loftis |
| Age and location | 39, Cushing, Oklahoma |
| Business involved | Back Pain Home Supplies LLC, doing business as EZ Medical Supply |
| Prison sentence | 14 years |
| Federal health care programs targeted | Medicare, TRICARE, and CHAMPVA |
| Total fraudulent claims | More than $30 million |
| Payments received | More than $8 million |
| Restitution ordered | More than $8 million |
| Forfeiture | More than $560,000 |
| Convictions | Conspiracy to commit health care fraud and wire fraud |
| Trial | 12-day jury trial ending in July 2026 |
| Investigating agencies | HHS-OIG, FBI, DCIS, and VA-OIG |
How the Medicare, TRICARE, and CHAMPVA Fraud Scheme Operated
Concealed Ownership and Billing Arrangements
According to court documents and evidence presented at trial, Loftis and his co-conspirators concealed the ownership and management of Back Pain Home Supplies LLC, doing business as EZ Medical Supply, from Medicare. They also hid the fact that unenrolled entities were submitting claims through the durable medical equipment company.
These arrangements allegedly allowed the participants to submit fraudulent claims while concealing the entities and individuals involved in the billing operations. The scheme targeted federal health care programs serving seniors, people with disabilities, military service members, and veterans.
Illegal Kickbacks and Marketing Operations
Loftis paid more than $1 million in illegal kickbacks to support the scheme. These payments were made to marketers, purported telemedicine companies, and other participants, including through a shell marketing company.
A call center also played a role in persuading elderly and disabled Americans to disclose their personal information and accept medical equipment they did not need. The operation used these marketing arrangements to generate beneficiaries and facilitate fraudulent DME claims.
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Sham Medical Orders for Unnecessary Equipment
Loftis and his co-conspirators purchased sham doctors’ orders for orthotic braces, continuous glucose monitors, and other durable medical equipment. The orders were generated by telemedicine doctors and nurse practitioners who often had never examined or even spoken to the beneficiaries.
The resulting claims sought reimbursement for equipment that beneficiaries did not want or medically need. The operation included repeated billing for multiple braces for individual patients, with one example involving eight orthotic braces billed for a single beneficiary.
Financial Losses and Criminal Penalties
More Than $30 Million in Fraudulent Claims
The defendants submitted more than $30 million in false and fraudulent claims to Medicare, TRICARE, and CHAMPVA. Federal health care programs paid more than $8 million on those claims.
The case highlights how fraudulent medical equipment orders, concealed billing arrangements, and illegal kickbacks can expose federally funded health care programs to substantial financial losses.
Restitution and Forfeiture Orders
In addition to his 14-year prison sentence, Loftis received the following financial penalties:
- Restitution: More than $8 million.
- Forfeiture: More than $560,000.
These orders accompany his criminal conviction and reflect the financial consequences imposed following the prosecution.
Jury Trial and Conviction
Twelve-Day Federal Trial
After a 12-day jury trial that ended in July 2026, a jury convicted Loftis of conspiracy to commit health care fraud and wire fraud.
The evidence presented at trial described a coordinated scheme involving concealed business ownership, fraudulent DME billing, illegal kickbacks, beneficiary information obtained through marketing operations, and medical orders issued without appropriate patient examinations or consultations.
The sentence demonstrates the criminal consequences of schemes that exploit federal health care reimbursement systems and vulnerable beneficiaries.
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Federal Agencies Respond to the Sentencing
Department of Justice’s National Fraud Enforcement Division
Assistant Attorney General Colin M. McDonald of the DOJ’s National Fraud Enforcement Division said the 14-year sentence demonstrates that health care fraud does not pay. He emphasized the department’s commitment to prosecuting individuals who corrupt the health care system through illegal kickbacks, false claims, and the misuse of sensitive patient information.
The department also stressed that fraudulent practices undermine programs designed to serve seniors, military service members, and veterans.
Department of Health and Human Services Office of Inspector General
Acting Deputy Inspector General for Investigations Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) described fraud against federal health care programs as an attack on public trust and the vulnerable people those programs are intended to protect.
She said the verdict and sentencing demonstrated that fraudulent schemes would face decisive enforcement action. HHS-OIG reaffirmed its commitment to investigating criminal conduct that threatens federal programs and taxpayer funds.
FBI and Defense Criminal Investigative Service
Special Agent in Charge Rodney Crawford of the FBI Tampa Field Office said health care fraud drains millions of dollars from federally funded programs and imposes costs on the public. He emphasized the FBI’s commitment to pursuing illegal kickbacks and other fraudulent practices.
Acting Special Agent in Charge Nakia M. Alexander of the Defense Criminal Investigative Service (DCIS) Southeast Field Office highlighted the agency’s responsibility to protect the integrity of TRICARE. She noted that the scheme directly affected American service members and their families and commended the investigative agencies and DOJ for their collaborative work.
Department of Veterans Affairs Office of Inspector General
Department of Veterans Affairs Inspector General Cheryl L. Mason said fraud involving VA programs and services compromises their integrity and diverts funds from veterans who depend on those benefits.
The VA Office of Inspector General (VA-OIG) reiterated its commitment to working with law enforcement partners to identify individuals responsible for fraud and hold them accountable.
Investigation and Prosecution Details
Agencies Involved in the Investigation
The following agencies investigated the case:
- U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).
- Federal Bureau of Investigation (FBI).
- Defense Criminal Investigative Service (DCIS).
- Department of Veterans Affairs Office of Inspector General (VA-OIG).
Their work focused on the alleged fraudulent claims, illegal kickbacks, concealed business relationships, and medical equipment orders that supported the scheme.
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DOJ Fraud Division and Federal Enforcement Priorities
On April 7, the Justice Department announced the creation of the Fraud Division. According to the DOJ, the division focuses on investigating and prosecuting individuals who commit fraud against the American people.
The department’s anti-fraud efforts also support President Trump’s Task Force to Eliminate Fraud, a government-wide initiative chaired by Vice President J.D. Vance to address fraud, waste, and abuse in federal benefit programs.
National Health Care Fraud Enforcement Efforts
Health Care Fraud Strike Force Program
The DOJ’s Health Care Fraud Strike Force Program comprises nine strike forces operating in federal districts across the United States. Since its establishment in 2007, the program has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers for more than $45 billion.
The program works to investigate and prosecute complex health care fraud schemes involving federal programs and private insurers.
Medicare Oversight and Provider Accountability
The Centers for Medicare & Medicaid Services (CMS), working with HHS-OIG, are taking steps to hold providers accountable for involvement in health care fraud schemes.
The agencies’ efforts complement criminal prosecutions by strengthening oversight of providers and protecting public funds intended for legitimate medical services and equipment.
Additional information about federal health care fraud enforcement is available through the DOJ Health Care Fraud Unit.
Conclusion
The 14-year prison sentence imposed on Oklahoma chiropractor and medical supply company owner Mark Loftis follows his conviction for conspiracy to commit health care fraud and wire fraud in a scheme involving more than $30 million in fraudulent claims. The operation targeted Medicare, TRICARE, and CHAMPVA through concealed billing arrangements, illegal kickbacks, call-center marketing, and sham medical orders for unnecessary durable medical equipment.
With more than $8 million in restitution and over $560,000 in forfeiture ordered, the case underscores the DOJ’s efforts to protect federal health care programs, safeguard taxpayer funds, and hold individuals accountable for fraud affecting seniors, disabled Americans, military families, and veterans.
To read the original order please visit DOJ (Department of Justice) website.