DME owner receives 14 year sentence for false orders and kickbacks
Oct 11, 2026 edition · GC-2026-0263 · Published 2026-10-11 · Version 4 · Final
Mark Loftis received fourteen years in prison for a DME scheme involving hidden ownership, kickbacks and sham clinical orders. More than $30 million was billed and more than $8 million paid across Medicare, TRICARE and CHAMPVA. Restitution and forfeiture orders are separate from the prison sentence.
What happened
DOJ’s October 9 release reports that Mark Loftis was sentenced the previous day to fourteen years in prison after a July jury conviction for healthcare-fraud and wire-fraud conspiracy. The case involved Back Pain Home Supplies LLC, doing business as EZ Medical Supply, and more than $30 million in false claims for braces, continuous glucose monitors and other DME. Medicare, TRICARE and CHAMPVA paid more than $8 million. Loftis and others hid ownership and management information and concealed unenrolled entities billing through the supplier.
The court-record account describes more than $1 million in kickbacks, including payments through a shell marketing company, and purchases of sham telemedicine orders from clinicians who had not examined and often had not spoken with beneficiaries. One example involved eight braces billed for a single beneficiary. The court also ordered more than $8 million in restitution and more than $560,000 in forfeiture; those are orders rather than proof of collection. The case connects enrollment transparency, marketing compensation, independent clinical orders and actual beneficiary need. It does not make legitimate telemedicine or clinically supported DME inherently improper.
Scope and timing
- Authority status
- Final
- Applicability
- Operationally relevant
- Audience
- Health systems, Provider networks
- Jurisdiction
- Federal
Why it matters
The scheme concealed ownership and unenrolled billers, purchased sham telemedicine orders and paid marketing kickbacks. More than $30 million was billed and more than $8 million paid.
Recommended action
Validate ownership disclosures, independent clinical orders, beneficiary need and marketing compensation across affiliated suppliers.
Case details
- agencies
- DOJ, HHS-OIG
- entities
- Mark Loftis, Back Pain Home Supplies LLC dba EZ Medical Supply
- action Type
- Criminal resolution
- event Date
- 2026-10-08
- alleged Conduct
- False DME claims and kickbacks targeting Medicare, TRICARE and CHAMPVA.
- resolution
- 14-year sentence, over $8 million restitution and over $560,000 forfeiture after conviction.
Operational lessons
- The scheme concealed ownership and unenrolled billers, purchased sham telemedicine orders and paid marketing kickbacks. More than $30 million was billed and more than $8 million paid.
- Validate ownership disclosures, independent clinical orders, beneficiary need and marketing compensation across affiliated suppliers.
Sources
- DME owner receives 14 year sentence for false orders and kickbacksOfficial · DOJ · 2026-10-09 · Source review 2026-10-11
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