Seven Things To Know When You Receive A Notice Of Investigation From The Department Of Health

Medical Supply Company Owner Convicted of $30 Million Medicare Fraud Scheme

By George F. Indest III, J.D., M.P.A., LL.M., Board Certified by The Florida Bar in Health Law

On July 22, 2026, a federal jury in the Middle District of Florida convicted an Oklahoma business owner for his role in a healthcare fraud scheme involving more than $30 million in claims submitted to Medicare and other federal healthcare programs. The case involved allegations that patient information, practitioner signatures, and medical orders were obtained and used to bill for orthotic braces and glucose monitors that patients allegedly did not want or need.

Medical Supply Owner Convicted of Healthcare Fraud

According to the U.S. Department of Justice (DOJ), Mark Loftis of Cushing, Oklahoma, owned medical supply companies and participated in a years-long scheme targeting Medicare, TRICARE, and the Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA).

Federal prosecutors alleged that the scheme attempted to bill these programs more than $30 million for orthotic braces and continuous glucose monitors. Loftis ultimately received more than $8 million in payments from the allegedly false and fraudulent claims.

A federal jury in the Middle District of Florida convicted Loftis of conspiracy to commit healthcare fraud and wire fraud.

Patient Information Allegedly Purchased Through Marketers

According to evidence presented at trial, Loftis paid more than $1 million to marketers who worked with call centers. The call centers persuaded elderly and disabled individuals to provide personal information, including their health insurance information. Then, he and his co-conspirators allegedly used this information to obtain signed orders for orthotic braces and continuous glucose monitors.

The DOJ stated that the orders were generated by telemedicine physicians and nurse practitioners who had never examined—and often had never even spoken with—the patients. The orders were then allegedly used to bill federal healthcare programs.

The jury convicted Loftis of conspiracy to commit health care fraud and wire fraud. He is scheduled to be sentenced on October 7, 2026, and faces a maximum penalty of 20 years in prison.

Tips for Physicians, Nurse Practitioners, and Other Health Professionals to Avoid Problems

Physicians and other health professionals must be diligent in ensuring that their names and credentials are not used for such fraudulent purposes. They can easily be sucked up into criminal investigations by prosecutors and be indicted as co-conspirators. Tips to avoid this include:

1. Never sign or authorize orders for any DME or medical supplies for any patient that you have not personally seen yourself.

2. Avoid any arrangement in which you are paid a fixed fee for each patient you “screen,” “review,” “qualify” or “approve” as qualifying for any testing, lab studies, DME or medical supplies.

3. Screen patient histories for factors showing a potential need for any type of leg, knee or back brace.

4. Screen patients who are not their regular patients for any type of leg, knee or back brace.

5. Screen patient histories for factors showing a potential need for any type of genetic testing.

6. Screen patients who are not their regular patients for any type of genetic testing.

7. Supervising others doing the above.

8. Allow the use of their name, medical license number or NPI for any of the above.

Contact Health Law Attorneys Experienced with Health Care Fraud, False Claims Act Violations, and Anti-Kickback Statute Violations.

The attorneys of The Health Law Firm represent healthcare providers in cases of medical billing fraud, overbilling, Medicare audits, program integrity Contractor audits, False Claims Act cases, and whistleblower/qui tam cases throughout Florida and across the United States. Our attorneys also represent physicians, medical groups, nursing homes, home health agencies, pharmacies, hospitals and other healthcare providers and institutions in Medicare and Medicaid investigations, audits, recovery actions and termination from the Medicare or Medicaid Program.

To contact The Health Law Firm, please call (407) 331-6620 or toll-free at (888) 331-6620 and visit our website at www.TheHealthLawFirm.com.

Sources:

Littrell, Keith. “Oklahoma DME owner charged in $30M brace fraud scheme.” Medical Economics. (January 12, 2026). Web.

Press Release. “Medical Supply Company Owner Convicted of $30M Medicare Fraud Scheme.” U.S. Department of Justice. (July 22, 2026). Web.

About the Author: George F. Indest III, J.D., M.P.A., LL.M., is Board Certified by The Florida Bar in Health Law. He is the President and Managing Partner of The Health Law Firm, which has a national practice. Its main office is in the Orlando, Florida, area. www.TheHealthLawFirm.com The Health Law Firm, 1101 Douglas Avenue, Suite 1000, Altamonte Springs, FL 32714, Phone: (407) 331-6620 Toll-Free: (888) 331-6620.

Keywords: Medicare fraud attorney, Medicare fraud scheme defense lawyer, healthcare fraud defense attorney, durable medical equipment fraud representation, DME fraud attorney, DME fraud defense lawyer, medical supply company fraud defense, Anti-Kickback Statute (AKS) defense, AKS lawyer, False Claims Act (FCA) defense lawyer, FCA investigation lawyer, telemedicine fraud lawyer, healthcare fraud investigation defense, Medicare audit defense, Federal healthcare fraud defense lawyer, TRICARE fraud lawyer, representation for TRICARE fraud, DOJ investigation lawyer, DOJ defense attorney, VA-OIG defense lawyer, VA-OIG investigation defense lawyer, reviews of The Health Law Firm, The Health Law Firm reviews“The Health Law Firm” is a registered fictitious business name of and a registered service mark of The Health Law Firm, P.A., a Florida professional service corporation, since 1999. Copyright © 2026 George F. Indest III, The Health Law Firm. All rights reserved. No part of this work may be reproduced in any way in any medium without the written permission of the copyright owner. The author of this work reserves the right to have his name associated with any use or publication of this work or any part of it.

By George F. Indest III, J.D., M.P.A., LL.M.

Board Certified by The Florida Bar in Health Law

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