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2026-06-03T14:25:05Z

Add DEFAULTSORT for last-name category sorting

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			{{DEFAULTSORT:Cox, Gary}}
	[[Category:High-Profile_Federal_Offenders]]		[[Category:High-Profile_Federal_Offenders]]
	[[Category:Health Care Fraud]]		[[Category:Health Care Fraud]]

Orderly: Create article: Gary Cox (federal case)

2026-06-03T14:25:01Z

Create article: Gary Cox (federal case)

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{{Infobox Person
|name = Gary Cox
|age = 79 (at sentencing)
|residence = Maricopa County, Arizona
|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
|conviction_date = June 3, 2025
|sentence = 15 years (180 months) in federal prison
|sentencing_date = December 2025
|restitution = More than $452 million
|judge = Hon. David S. Leibowitz
|case_number = 1:23-cr-20271 (S.D. Fla.)
|status = Incarcerated
|occupation = Software company executive
|known_for = Operating the DMERx platform; $1 billion Medicare fraud conspiracy
}}

'''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.<ref name="oig">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.</ref><ref name="hme">HME News. "Owner of DMERx sentenced to jail, ordered to pay restitution." December 2025.</ref>

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.<ref name="oig"/><ref name="becker">Becker's Hospital Review. "Arizona man sentenced to 15 years for $1B telemedicine fraud scheme." December 2025.</ref>

A federal jury in Miami convicted Cox on June 3, 2025, after a multi-week trial.<ref name="oig"/> 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.<ref name="hme"/><ref name="ij">Insurance Journal. "CEO Sentenced in Miami to 15 Years in One of the Largest Health Care Fraud Cases." December 22, 2025.</ref> Cox was 79 years old at sentencing and had been living in Maricopa County, Arizona.<ref name="becker"/><ref name="ij"/>

== 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.<ref name="becker"/><ref name="ij"/>

Cox served as the chief executive officer of Power Mobility Doctor Rx, LLC. The company owned and operated the DMERx platform.<ref name="oig"/> 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.<ref name="afs">ArentFox Schiff. "CEO of Health Care Software Company Convicted of $1 Billion in Medicare Fraud." 2025.</ref>

== 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.<ref name="oig"/>

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.<ref name="oig"/><ref name="becker"/>

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.<ref name="oig"/>

Prosecutors described a second platform in the same orbit, the HealthSplash Network, used alongside DMERx in the broader conspiracy.<ref name="afs">ArentFox Schiff. "CEO of Health Care Software Company Convicted of $1 Billion in Medicare Fraud." 2025.</ref>

== 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.<ref name="oig"/><ref name="becker"/>

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.<ref name="oig"/>

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.<ref name="oig"/><ref name="becker"/>

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.<ref name="oig"/><ref name="becker"/>

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.<ref name="afs"/> The case was part of a wider federal enforcement effort against telemedicine and durable medical equipment fraud.<ref name="afs"/>

== 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.<ref name="govinfo">U.S. Government Publishing Office. "23-20271 - USA v. Blackman et al." govinfo.gov.</ref>

He went to trial in Miami. On June 3, 2025, a federal jury convicted him on all counts presented.<ref name="oig"/><ref name="afs"/> 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<ref name="oig"/>

After the verdict, prosecutors told the court Cox faced a statutory maximum of decades in prison across the combined counts.<ref name="local10">Local 10 News. "Ex-healthcare software company executive could face up to 60 years in prison, prosecutors say." June 6, 2025.</ref>

== Sentencing ==

U.S. District Judge David S. Leibowitz sentenced Cox in December 2025.<ref name="hme"/><ref name="ij"/> The court imposed a term of 15 years, or 180 months, in federal prison.<ref name="oig2">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.</ref><ref name="becker"/>

The court also ordered restitution of more than $452 million.<ref name="hme"/><ref name="becker"/> Prosecutors had asked for a 15-year term, a request they framed as accounting for Cox's age, and the judge imposed it.<ref name="ij"/>

Reporting placed the sentencing among the largest health care fraud sentences handed down in the district.<ref name="ij"/> 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.<ref name="ij"/><ref name="memo">U.S. District Court, Southern District of Florida. Sentencing memorandum, ''United States v. Cox'', case 1:23-cr-20271 (filed December 2025).</ref>

== Frequently Asked Questions ==
{{FAQSection/Start}}
{{FAQ|question=Who is Gary Cox?|answer=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.}}
{{FAQ|question=What was Gary Cox convicted of?|answer=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.}}
{{FAQ|question=What is DMERx?|answer=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.}}
{{FAQ|question=How much did the DMERx scheme cost Medicare?|answer=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.}}
{{FAQ|question=How long is Gary Cox's sentence?|answer=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.}}
{{FAQ|question=How much restitution did Gary Cox have to pay?|answer=The court ordered Cox to pay more than $452 million in restitution following his conviction.}}
{{FAQ|question=Where was Gary Cox prosecuted?|answer=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.}}
{{FAQ|question=Were others charged in the DMERx case?|answer=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.}}
{{FAQ|question=How old is Gary Cox?|answer=Cox was 79 years old at the time of his sentencing in December 2025. He had been living in Maricopa County, Arizona.}}
{{FAQSection/End}}

== References ==

<references />

[[Category:High-Profile_Federal_Offenders]]
[[Category:Health Care Fraud]]
[[Category:White_Collar_Crime]]
[[Category:Incarcerated]]

{{#seo:
|title=Gary Cox — DMERx CEO, $1 Billion Medicare Fraud Case | Prisonpedia
|title_mode=replace
|description=Gary Cox, CEO of the DMERx platform, was convicted of a $1 billion Medicare fraud conspiracy and sentenced to 15 years with $452M restitution. Full case file.
|keywords=Gary Cox, DMERx, Power Mobility Doctor Rx, Medicare fraud, health care fraud, telemedicine fraud, durable medical equipment fraud, Gary Cox sentenced, $1 billion Medicare fraud
|type=ProfilePage
|site_name=Prisonpedia
|locale=en_US
|published_time=2026-06-03
|modified_time=2026-06-03
}}

{{MetaDescription|Gary Cox, CEO of the DMERx platform, was convicted of a $1 billion Medicare fraud conspiracy and sentenced to 15 years in federal prison with more than $452 million in restitution. Case file on Prisonpedia.}}

Gary Cox - Revision history

JasonHarris: Add DEFAULTSORT for last-name category sorting

Orderly: Create article: Gary Cox (federal case)