14 YEARS FOR $30M MEDICARE, TRICARE AND CHAMPVA FRAUD
By VA Headlines · Published Nov 3, 2026 · Source dated October 9, 2026 (U.S. Department of Justice)
An Oklahoma business owner and chiropractor was sentenced to 14 years in federal prison for a years-long scheme that tried to bill Medicare, TRICARE and CHAMPVA more than $30 million for orthotic braces, continuous glucose monitors and other medical equipment that beneficiaries did not want or need, the Justice Department announced October 9, 2026.
CHAMPVA, the Civilian Health and Medical Program of the Department of Veterans Affairs, covers certain family members and survivors of veterans. The VA Office of Inspector General was one of four agencies that investigated.
What DOJ says happened
According to court documents and trial evidence cited by DOJ, Mark Loftis, 39, of Cushing, Oklahoma, and his co-conspirators:
Hid from Medicare who owned and managed the equipment company, Back Pain Home Supplies LLC, doing business as EZ Medical Supply, and that unenrolled entities were billing claims through it.
Paid over a million dollars in illegal kickbacks, including through a shell marketing company, to marketers, purported telemedicine companies and a call center that persuaded elderly and disabled Americans to give up their personal information and take equipment they did not need.
Bought sham doctors' orders from telemedicine doctors and nurse practitioners who never examined, and often never spoke to, the beneficiaries.
Often billed for several braces at once, including, in one example, eight braces for a single beneficiary.
DOJ says they submitted over $30 million in false and fraudulent claims and were paid over $8 million.
Verdict and sentence
After a 12-day jury trial that ended in July 2026, Loftis was convicted of conspiracy to commit health care fraud and wire fraud. Besides the 14-year prison term, he was ordered to pay over $8 million in restitution and to forfeit over $560,000, DOJ says.
"Fraud schemes targeting VA programs and services compromise their integrity and divert funds from veterans who rely on these benefits," said VA Inspector General Cheryl L. Mason.
HHS OIG, the FBI, the Defense Criminal Investigative Service and VA OIG investigated. Prosecutors from the National Fraud Enforcement Division's Health Care Fraud Section tried the case.
Related: VA fraud cases tracker. Minnesota fraud surge: VA OIG health care fraud case. CVS $315M opioid settlement. More: all VA Headlines reports. How we report: Methodology & Corrections.
Medical Supply Company Owner Sentenced to 14 Years in Prison for $30M Medicare, TRICARE, and CHAMPVA Fraud · October 9, 2026
Read the DOJ release
He was convicted by a jury in July 2026 and sentenced in October 2026, per DOJ. VA Headlines reports only what official records say. Spot an error? See our corrections policy.