Gary Cox, the CEO of Power Mobility Doctor Rx, LLC, has been convicted by a federal jury for masterminding one of the largest health care fraud operations in recent history—an elaborate scheme that generated over $1 billion in false claims to Medicare and other federal benefit programs.
At the center of the operation was a telehealth platform called DMERx, which Cox and his co-conspirators used to create fake doctors’ orders for unnecessary medical equipment and prescriptions. According to evidence presented at trial, these fraudulent orders were then used to bill federal programs for orthotic braces, pain creams, and other items that patients either didn’t need or never received.
Court documents revealed that the scheme targeted hundreds of thousands of elderly Medicare beneficiaries. Using aggressive marketing campaigns, scammers acquired seniors’ personal and insurance information, which was then funneled into the DMERx platform to generate phony medical documentation.
Cox and his team profited by arranging illegal kickbacks among marketers, telemedicine companies, and pharmacies. Physicians were compensated for signing off on these fake orders—often after only a brief phone call or, in many cases, no direct patient interaction at all.
“The defendant orchestrated a scheme to defraud government health care benefit programs on a massive scale,” said Matthew Galeotti of the Department of Justice’s Criminal Division. “This was not just a financial crime—it was a direct attack on the integrity of programs meant to protect our most vulnerable citizens.”
Cox was found guilty of a range of charges, including conspiracy to commit health care and wire fraud, health care fraud, conspiracy to pay and receive kickbacks, and making false statements. He now faces up to 20 years in prison.
Christian Schrank, Deputy Inspector General at the Department of Health and Human Services, said the scheme amounted to a gross betrayal of public trust. “This case shows how criminal networks exploit seniors and siphon taxpayer dollars through fraudulent health care systems,” he said.
The investigation was conducted by the DOJ’s Criminal Division in partnership with the HHS Office of Inspector General and other federal agencies. Sentencing for Cox is expected to be announced in the coming months.
Authorities have vowed to continue cracking down on fraud schemes that abuse telehealth and federal health care infrastructure, especially as remote care becomes more widely used.
