Dr. Mark Loftis, 39, of Cushing, Oklahoma, will spend 14 years in federal prison for running a medical supply company that billed Medicare, TRICARE and CHAMPVA for equipment patients did not need. The Justice Department said in a release on Oct. 9 that Loftis was sentenced the day before. He was ordered to repay more than $8 million in restitution and to forfeit more than $560,000.
The restitution figure is the money the three health programs actually paid. The false claims themselves were far larger: more than $30 million was billed, according to the department, and Loftis, a chiropractor who owned Back Pain Home Supplies LLC, doing business as EZ Medical Supply, took in more than $8 million of it.
The 14-year term follows a 12-day jury trial that ended in July, and the more than $8 million restitution order is the next number to follow.
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Braces, glucose monitors and eight braces for one patient
The company sold orthotic braces, continuous glucose monitors and other durable medical equipment, the category that covers items such as braces and monitors that a patient uses at home. According to the Justice Department, the equipment went to beneficiaries who did not need it. Multiple braces were often billed at once, including eight braces for a single beneficiary.
The programs involved cover different groups. Medicare covers older and disabled Americans, TRICARE covers military families and retirees, and the Civilian Health and Medical Program of the Department of Veterans Affairs, known as CHAMPVA, covers certain family members of veterans. The U.S. Department of Health and Human Services’ inspector general, which investigated the case, said in its notice of the July verdict that Loftis attempted to bilk the three programs out of more than $30 million.
How the orders were produced
The claims depended on doctors’ orders, and the Justice Department says the sham orders were bought from telemedicine doctors and nurse practitioners who never examined the beneficiaries and often never spoke to them. Marketers, purported telemedicine companies and a call center persuaded elderly and disabled people to hand over personal information and to accept equipment they did not need.
More than $1 million in kickbacks was paid to those marketers, the telemedicine companies and the call center, including through a shell marketing company. Medicare was also kept from seeing who was behind the business. The company did not disclose its true ownership and management to Medicare, and entities that were not enrolled in the program billed claims through it, the department said.
What the jury decided and how the sentence compares
The Justice Department describes the scheme as years-long, and the two programs for service members, retirees and veterans’ families sat alongside Medicare as billing targets, so the case touched three separate federal health systems at once.
A jury convicted Loftis in July after a 12-day trial of conspiracy to commit health care fraud and wire fraud. At that time the Justice Department said sentencing was scheduled for Oct. 7 and that the maximum penalty was 20 years in prison. The sentence handed down is 14 years, six short of that maximum.
The money figures carry different meanings, and they are easy to confuse. The $30 million is what was billed. The $8 million is what the programs paid and what Loftis must repay. The $560,000 forfeiture is a separate order.
The agencies behind the case
Four federal investigators worked it: the inspector general of the Department of Health and Human Services, the FBI, the Defense Criminal Investigative Service and the inspector general of the Department of Veterans Affairs. The Justice Department release includes statements from Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division, Acting Deputy Inspector General for Investigations Miranda L. Bennett of HHS, FBI Tampa Special Agent in Charge Rodney Crawford, DCIS Southeast Acting Special Agent in Charge Nakia M. Alexander and VA Inspector General Cheryl L. Mason. Assistant Deputy Chief Catherine Wagner and Trial Attorney Raymond Beckering III of the department’s Health Care Fraud Section prosecuted the case.
What the sentence means for Medicare and TRICARE members
This was a case about a supplier billing programs, and nothing in the Justice Department release asks beneficiaries to take a step. The details still point to what members can watch for in their own statements. The scheme worked because beneficiaries were persuaded to hand over personal information and accept equipment, and because claims for items such as multiple braces went through under their names.
Members of Medicare, TRICARE or CHAMPVA who spot a brace, monitor or other equipment on a statement that was never ordered or delivered can compare the supplier named on the statement with their own records and report the mismatch to their plan. The inspector general’s office posts new cases and resolutions on its enforcement actions page, where new cases and settlements are posted.
The Justice Department release lists the 14-year term, the restitution of more than $8 million and the forfeiture of more than $560,000, all announced Oct. 9, 2026 through the department’s Office of Public Affairs as press release 26-1159.
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This article was produced with AI assistance and reviewed by The Financial Wire’s editorial team.
David M. Keller is a finance writer based in Columbus, Ohio, covering personal finance and consumer-focused economic topics. He earned his degree in journalism from Ohio University and began his career reporting on local business and economic trends for a regional media outlet. Since then, he has contributed to a variety of online publications, focusing on clear, practical coverage of topics such as cost of living, debt, and everyday financial decision-making.
