Coke Gary (Gary Cox)

Coke Gary (Gary Cox)

Biography

2025: Charge of conspiracy to commit healthcare fraud

On June 6, 2025, the US Department of Justice announced that the CEO of Power Mobility Doctor Rx LLC (DMERx), a healthcare software company, was found guilty of organizing a large-scale fraudulent operation using telemedicine services. Damage is estimated at more than $1 billion.

The person involved in the case was the head of DMERx, 79-year-old Gary Cox from Maricopa County in Arizona. It is alleged that he co-operated with accomplices an internet platform that generated fraudulent prescriptions from doctors for medically unnecessary items such as orthopedic staples and pain creams. The large-scale scheme included misleading mailings, calls from offshore call centers, etc.

Fraudsters have linked pharmacies, medical equipment suppliers and marketers to telemedicine companies. The latter paid doctors to sign prescriptions without regard to medical necessity, based only on a brief phone call.

Medical device providers and pharmacies that paid kickbacks in exchange for these doctor's orders issued more than $1 billion in bills to Medicare (the national health insurance program in the United States) and other insurers, the authorities said in a statement.

Thus, the accused organized a fraud scheme with government health insurance programs on a large scale. Cox faces a maximum sentence of 20 years in prison for conspiracy to commit healthcare fraud and wire fraud, 10 years for each medical fraud charge, five years for conspiracy to pay and receive healthcare bribes.^[1]

Notes