EZ Medical Supply's owner got 14 years for a $30M DME fraud built on sham orders

On October 8, 2026, Dr. Mark Loftis, a 39-year-old Oklahoma chiropractor, was sentenced to 14 years in prison for a years-long scheme that attempted to bilk Medicare, TRICARE and CHAMPVA out of over $30 million for orthotic braces, continuous glucose monitors and other durable medical equipment that beneficiaries did not want or need. Court documents show Loftis and his co-conspirators did not disclose to Medicare the ownership and management of Back Pain Home Supplies LLC d/b/a EZ Medical Supply, and hid that unenrolled entities were billing claims through the company.

The scheme ran on purchased demand. Loftis paid over a million dollars in illegal kickbacks, including through a shell marketing company, to marketers, purported telemedicine companies and a call center that persuaded elderly and disabled Americans to hand over personal information and receive equipment they did not need. He also bought sham doctors' orders generated by telemedicine doctors and nurse practitioners who never examined — and often never spoke to — the beneficiaries, and billed for multiple braces at a time, in one instance eight braces for a single beneficiary.

The scheme filed over $30 million in false claims and was paid over $8 million before it unravelled. After a 12-day jury trial that ended in July 2026, Loftis was convicted of conspiracy to commit health care fraud and wire fraud. On top of the prison term, he was ordered to pay over $8 million in restitution and to forfeit over $560,000. The case was investigated by HHS-OIG, the FBI, the Defense Criminal Investigative Service and the VA Office of Inspector General, and prosecuted by the Justice Department's National Fraud Enforcement Division.

14 years in prison, over $8M in restitution and over $560,000 forfeited — from a scheme that filed more than $30M in false claims and collected over $8M.

The billing structure was built to deceive: Medicare was not told who actually owned and managed EZ Medical Supply, and unenrolled entities billed through it.

Demand was manufactured — over $1 million in kickbacks bought patient leads from marketers, purported telemedicine companies and a call center targeting elderly and disabled Americans.

The medical justification was fake: doctors' orders came from telemedicine providers who never examined or often even spoke to the beneficiaries.

The billing pattern itself signaled fraud, including charges for multiple orthotic braces per beneficiary — eight in one documented case.

A revenue model that depends on hiding who owns the biller and on orders no doctor ever backed is not an aggressive sales tactic; it is a conspiracy with a sentence attached.

Loftis remains subject to restitution of over $8 million and forfeiture of over $560,000 alongside the 14-year sentence. The Justice Department presented the case as part of its broader health-care fraud enforcement: its Health Care Fraud Strike Force program, nine teams operating across federal districts, has charged more than 6,200 defendants who collectively billed federal health programs and private insurers more than $45 billion since 2007.