Gary Cox
| Gary Cox | |
|---|---|
| Born: | |
| Charges: | Conspiracy to commit health care fraud and wire fraud; health care fraud (3 counts); conspiracy to pay and receive health care kickbacks; conspiracy to defraud the United States and make false statements relating to health care matters |
| Sentence: | 15 years (180 months) in federal prison |
| Facility: | |
| Status: | Incarcerated |
Gary Cox is an American former software company executive convicted in 2025 of running a health care fraud conspiracy built around DMERx, an internet platform that produced false and fraudulent doctors' orders. Cox was the chief executive of Power Mobility Doctor Rx, LLC, the company behind DMERx.[1][2]
The DMERx platform sat at the center of the scheme. It generated doctors' orders for orthotic braces, prescription pain creams, genetic tests, and other items, and it transmitted those orders to durable medical equipment suppliers and pharmacies. The orders looked legitimate. Many were not. Telemedicine companies paid doctors to sign them based on a short phone call with a Medicare beneficiary or no contact at all. Suppliers and pharmacies that paid kickbacks for the orders then billed Medicare and other insurers more than $1 billion. Medicare and the insurers paid out more than $360 million.[1][3]
A federal jury in Miami convicted Cox on June 3, 2025, after a multi-week trial.[1] In December 2025, U.S. District Judge David S. Leibowitz sentenced him to 15 years in federal prison and ordered him to pay more than $452 million in restitution.[2][4] Cox was 79 years old at sentencing and had been living in Maricopa County, Arizona.[3][4]
Background
Public records on Cox's early life are limited. Court filings and government statements identify him as a resident of Maricopa County, Arizona, and list his age as 79 at the time of sentencing.[3][4]
Cox served as the chief executive officer of Power Mobility Doctor Rx, LLC. The company owned and operated the DMERx platform.[1] Two other executives, Brett Blackman and Gregory Schreck, were charged in connection with the same conspiracy. Schreck, a vice president tied to the HealthSplash Network platform, pleaded guilty in February 2025. Blackman's case was handled separately after a mistrial.[5]
DMERx
DMERx was an internet-based software platform. Its function was to produce doctors' orders for durable medical equipment and prescription items, then route those orders to the companies that would bill federal health care programs.[1]
The platform connected several types of participants. On one side were durable medical equipment suppliers, pharmacies, and marketers who needed signed orders to bill. On the other were telemedicine companies that could supply those signatures. DMERx linked the two. The marketers obtained the personal and Medicare information of beneficiaries. The telemedicine companies paid doctors to sign orders for those beneficiaries. DMERx generated the paperwork and transmitted it.[1][3]
The orders carried a specific false representation. Each one stated that a physician had examined and treated the beneficiary. In most cases that did not happen. Doctors signed based on a brief telephone call or with no patient interaction at all, and without regard to whether the item was medically necessary.[1]
Prosecutors described a second platform in the same orbit, the HealthSplash Network, used alongside DMERx in the broader conspiracy.[5]
The Scheme
The fraud started with beneficiaries. Cox and his co-conspirators targeted hundreds of thousands of Medicare beneficiaries. They reached them through misleading mailers, television advertisements, and calls from offshore call centers. The beneficiaries handed over their personal identifying information and agreed to accept items they did not need.[1][3]
The items were medically unnecessary. They included orthotic braces, prescription pain creams, and other products and tests. The beneficiaries had not been examined by a treating physician for any of it.[1]
DMERx turned that raw information into billable orders. The platform produced doctors' orders that named the beneficiaries and the items. Telemedicine companies paid kickbacks and bribes to doctors to sign. The signed orders went to suppliers and pharmacies through the platform.[1][3]
The suppliers and pharmacies then billed. They submitted claims to Medicare and other insurers totaling more than $1 billion. The programs and insurers paid more than $360 million on those claims before the conduct was stopped.[1][3]
The participants took steps to hide the arrangement. Prosecutors said they used sham contracts to disguise the kickbacks and edited doctors' orders to survive Medicare audits.[5] The case was part of a wider federal enforcement effort against telemedicine and durable medical equipment fraud.[5]
Charges and Conviction
Cox was charged in the U.S. District Court for the Southern District of Florida. The case was captioned United States v. Blackman et al., case number 1:23-cr-20271.[6]
He went to trial in Miami. On June 3, 2025, a federal jury convicted him on all counts presented.[1][5] The counts of conviction were:
- Conspiracy to commit health care fraud and wire fraud
- Health care fraud (three counts)
- Conspiracy to pay and receive health care kickbacks
- Conspiracy to defraud the United States and make false statements relating to health care matters[1]
After the verdict, prosecutors told the court Cox faced a statutory maximum of decades in prison across the combined counts.[7]
Sentencing
U.S. District Judge David S. Leibowitz sentenced Cox in December 2025.[2][4] The court imposed a term of 15 years, or 180 months, in federal prison.[8][3]
The court also ordered restitution of more than $452 million.[2][3] Prosecutors had asked for a 15-year term, a request they framed as accounting for Cox's age, and the judge imposed it.[4]
Reporting placed the sentencing among the largest health care fraud sentences handed down in the district.[4] The exact hearing date was not stated in public coverage at the time of this writing; news reports published December 22, 2025 described the sentencing as having occurred the prior week, and a sentencing memorandum was filed on the court docket on December 18, 2025.[4][9]
Frequently Asked Questions
Q: Who is Gary Cox?
Gary Cox is a former software company executive who served as chief executive of Power Mobility Doctor Rx, LLC, the company behind the DMERx platform. A federal jury in Miami convicted him in June 2025 of a health care fraud conspiracy that used DMERx to generate false doctors' orders, leading to more than $1 billion in claims to Medicare and other insurers.
Q: What was Gary Cox convicted of?
A federal jury convicted Cox on June 3, 2025 of conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, conspiracy to pay and receive health care kickbacks, and conspiracy to defraud the United States and make false statements relating to health care matters.
Q: What is DMERx?
DMERx was an internet-based software platform operated by Cox's company. It generated doctors' orders for orthotic braces, pain creams, genetic tests, and other items, then transmitted them to durable medical equipment suppliers and pharmacies. The orders falsely stated that a physician had examined and treated the beneficiary, when in fact doctors signed based on a brief phone call or no patient contact at all.
Q: How much did the DMERx scheme cost Medicare?
Suppliers and pharmacies that paid kickbacks for the false orders billed Medicare and other insurers more than $1 billion. Medicare and the insurers paid more than $360 million on those claims.
Q: How long is Gary Cox's sentence?
U.S. District Judge David S. Leibowitz sentenced Cox in December 2025 to 15 years, or 180 months, in federal prison. The court also ordered him to pay more than $452 million in restitution.
Q: How much restitution did Gary Cox have to pay?
The court ordered Cox to pay more than $452 million in restitution following his conviction.
Q: Where was Gary Cox prosecuted?
Cox was prosecuted in the U.S. District Court for the Southern District of Florida, in Miami. The case number is 1:23-cr-20271, and the case was captioned United States v. Blackman et al.
Q: Were others charged in the DMERx case?
Yes. Two other executives, Brett Blackman and Gregory Schreck, were charged in connection with the conspiracy. Schreck pleaded guilty in February 2025. Blackman's case was handled separately after a mistrial.
Q: How old is Gary Cox?
Cox was 79 years old at the time of his sentencing in December 2025. He had been living in Maricopa County, Arizona.
References
- ↑ 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 U.S. Department of Health and Human Services, Office of Inspector General. "CEO of Health Care Software Company Convicted of $1 Billion Fraud Conspiracy." 2025.
- ↑ 2.0 2.1 2.2 2.3 HME News. "Owner of DMERx sentenced to jail, ordered to pay restitution." December 2025.
- ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 Becker's Hospital Review. "Arizona man sentenced to 15 years for $1B telemedicine fraud scheme." December 2025.
- ↑ 4.0 4.1 4.2 4.3 4.4 4.5 4.6 Insurance Journal. "CEO Sentenced in Miami to 15 Years in One of the Largest Health Care Fraud Cases." December 22, 2025.
- ↑ 5.0 5.1 5.2 5.3 5.4 ArentFox Schiff. "CEO of Health Care Software Company Convicted of $1 Billion in Medicare Fraud." 2025.
- ↑ U.S. Government Publishing Office. "23-20271 - USA v. Blackman et al." govinfo.gov.
- ↑ Local 10 News. "Ex-healthcare software company executive could face up to 60 years in prison, prosecutors say." June 6, 2025.
- ↑ U.S. Department of Health and Human Services, Office of Inspector General. "CEO of Health Care Software Company Sentenced for $1B Fraud Conspiracy." December 2025.
- ↑ U.S. District Court, Southern District of Florida. Sentencing memorandum, United States v. Cox, case 1:23-cr-20271 (filed December 2025).