OKLAHOMA CITY (KOKH) — An Oklahoma chiropractor and business owner has been sentenced to 14 years in federal prison for his role in a years-long scheme that tried to defraud Medicare, TRICARE and the Civilian Health and Medical Program of the Department of Veterans Affairs out of more than $30 million.
“Yesterday’s 14-year sentence shows that health care fraud does not pay,” said Assistant Attorney General Colin M. McDonald of the Department of Justice’s National Fraud Enforcement Division. “The Department is committed to bringing to justice those who corrupt our health care system by paying illegal kickbacks, submitting false claims, deceiving programs that serve our seniors, service members, and veterans, and treating sensitive patient information like a commodity to be bought and sold.”
Authorities said Dr. Mark Loftis paid more than $1 million in illegal kickbacks, including through a shell marketing company, to marketers, purported telemedicine companies and a call center. Investigators said the call center persuaded elderly and disabled Americans to disclose personal information and receive medical equipment they did not need.
Prosecutors also said Loftis and co-conspirators purchased sham doctors’ orders for orthotic braces, continuous glucose monitors and other medical equipment that were generated by telemedicine doctors and nurse practitioners who never examined or spoke to the beneficiaries.
“Healthcare fraud drains millions of dollars from federally funded programs, and we all pay the price,” said Special Agent in Charge Rodney Crawford of the FBI Tampa Field Office. “Today’s sentence underscores the FBI’s steadfast commitment to aggressively pursuing those who engage in kickback schemes and other fraudulent practices.”
The DOJ said the group submitted more than $30 million in false and fraudulent claims and was paid more than $8 million. In one example cited by prosecutors, the group billed for eight braces for a single beneficiary.
“Fraud against federal health care programs is a direct attack on the public’s trust and on the vulnerable individuals these programs are meant to protect, and the jury’s verdict and sentencing of Mark Loftis demonstrate that schemes of this kind will be met with decisive action and significant consequences,” said Acting Deputy Inspector General for Investigations Miranda L. Bennett of the U.S. Department of Health and Human Services, Office of Inspector General.
After a 12-day jury trial, Loftis was convicted of conspiracy to commit health care fraud and wire fraud.
In addition to the prison sentence, he was ordered to pay more than $8 million in restitution and to forfeit more than $560,000.