An Oklahoma chiropractor and medical supply company owner has been indicted for allegedly submitting $30 million in false claims to federal healthcare programs and misusing COVID-19 relief funds for a fraud scheme involving physician kickbacks, according to a Jan. 13 news release from the Justice Department.
What happened?
- Mark Loftis was the owner of Back Pain Home Supplies LLC, which did business as EZ Medical Supply. Mr. Loftis allegedly paid illegal kickbacks to marketers and telemedicine companies in exchange for Medicare patient referrals and signed physicians’ orders. The orders were allegedly used to support fraudulent claims for orthotic braces and other durable medical equipment.
- Mr. Loftis is accused of billing Medicare, TriCare and CHAMPVA for equipment that was medically unnecessary, obtained through kickbacks and not provided as billed. The programs paid approximately $8 million on the $30 million in false claims.
- He also allegedly misused more than $133,000 received through the Provider Relief Fund under the Cares Act, using it to further the fraud scheme and cover personal expenses. The indictment states Mr. Loftis falsely attested to requirements for using the funds.
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