An Oklahoma chiropractor, Mark Loftis, has been indicted for his involvement in a $30 million healthcare fraud scheme. The case was unsealed in the Middle District of Florida, where Loftis, 38, allegedly ran a medical supply company, Back Pain Home Supplies LLC, operating as EZ Medical Supply.
Details of the Scheme
The indictment reveals that Loftis was engaged in submitting false claims to federal health care programs, including Medicare, TRICARE, and CHAMPVA. These claims were primarily for orthotic braces and other durable medical equipment (DME) that were often unnecessary and procured through illegal means.
Loftis purportedly paid kickbacks to various marketers and telemedicine companies to obtain signed doctors’ orders without performing proper patient evaluations. In total, his company submitted around $30 million in fraudulent claims, leading to approximately $8 million in payments from the health care programs.
Theft of Government Funds
Additionally, Loftis is accused of misusing funds from the Provider Relief Fund (PRF), which was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The funds were intended to support healthcare providers affected by the COVID-19 pandemic.
- Loftis received over $133,000 from the PRF.
- He falsely claimed the funds would be used for health care expenses and lost revenue.
- In reality, some PRF funds were diverted to support his fraudulent activities and personal expenditures.
Charges and Potential Sentences
Loftis faces several serious charges, including:
- One count of conspiracy to commit healthcare fraud and wire fraud.
- One count of conspiracy to defraud the United States and accept kickbacks.
- Two counts of theft of government property.
If convicted, he could face up to 20 years in prison for the healthcare fraud conspiracy, five years for the kickback conspiracy, and 10 years for each theft count. Sentencing will be determined by a federal judge based on the U.S. Sentencing Guidelines.
Ongoing Investigation
The case is being investigated by the FBI, U.S. Department of Health and Human Services, and the Department of Defense. Additionally, it is being prosecuted by the Justice Department’s Fraud Section, which leads efforts against healthcare fraud.
This indictment highlights ongoing initiatives to combat fraudulent practices in the healthcare industry. The Health Care Fraud Strike Force has charged over 5,800 defendants since 2007, with fraudulent claims exceeding $30 billion.
It is important to note that the charges against Loftis are mere allegations, and he is presumed innocent until proven guilty in court.
