Oklahoma Medical Supply Company Owner Indicted for $30M Health Care Fraud Scheme

US Department of Justice, January 8, 2026

An indictment was unsealed in the Middle District of Florida today charging an Oklahoma chiropractor and medical supply company owner for his role in a conspiracy to submit fraudulent claims to multiple federal health care programs for orthotic braces and other durable medical equipment (DME), and for the theft of government funds intended to support health care providers during the COVID-19 pandemic.

According to the indictment, Mark Loftis, 38, of Cushing, Oklahoma, was the owner of a medical supply company called Back Pain Home Supplies LLC, which did business as EZ Medical Supply. As alleged, Loftis paid illegal kickbacks to marketers in exchange for the referral of Medicare patients, and to marketers and telemedicine companies in exchange for signed doctors’ orders that could be used to support claims to health care benefit programs. The telemedicine providers did not engage in meaningful evaluation of the patients before signing the orders. Loftis allegedly caused Back Pain to bill Medicare, TRICARE (the health care benefit program for U.S. service members and their families), and CHAMPVA (the health care benefit program for spouses and children of permanently disabled veterans) for DME that was medically unnecessary, obtained through the payment of illegal kickbacks, and not provided as billed. In total, Back Pain submitted approximately $30 million in false and fraudulent claims, for which the three health care programs paid approximately $8 million.

As further alleged, Loftis converted for his own use and the use of others money he received from the Provider Relief Fund (PRF) pursuant to the Coronavirus Aid, Relief, and Economic Security (CARES) Act. PRF funds were appropriated to help health care providers that were financially impacted by the COVID-19 pandemic, as well as to provide care to patients who were suffering from COVID-19 and compensate providers for the cost of that care. As alleged, Loftis received more than $133,000 in PRF funds and then falsely attested to a series of conditions to retain the funds, including that he would use the funds for health care expenses and to replace revenue lost due to the pandemic. In reality, Loftis used a portion of the funds to further the DME fraud scheme and for a variety of personal expenses.

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