MIAMI – A convicted 79-year-old former healthcare software company executive who was awaiting his sentencing faces up to 60 years in prison, according to federal prosecutors in Miami.
A jury convicted Gary Cox, the former chief executive officer of Power Mobility Doctor Rx, LLC, on Tuesday of six crimes related to a $1 billion fraud conspiracy.
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“The defendant orchestrated a scheme to defraud government health care benefit programs on a massive scale,” Attorney Matthew R. Galeotti, the head of the Justice Department’s Criminal Division, said.
Federal prosecutors accused Cox of running DMERx, an internet-based platform that FBI Miami agents reported transmitted doctor’s fraudulent orders, which were motivated by kickbacks and bribes.
“Fraud of this kind wastes taxpayer dollars and increases the cost of healthcare for all Americans,” U.S. Attorney for the Southern District of Florida Hayden P. O’Byrne said.
Investigators reported pharmacies, suppliers, and marketers were behind the “medically unnecessary” orthotic braces and other items as victims fell prey to misleading mailers, television ads, and offshore call centers.
FBI Miami special agents worked with investigators from the Department of Health and Human Services and the Department of Veterans Affairs.
Here is how the years in prison could add up according to federal prosecutors who cited sentencing guidelines:
For the charge of conspiracy to commit health care fraud and wire fraud, Cox faces a maximum penalty of 20 years in prison.
For the three counts of healthcare fraud, Cox faces up to 30 years in prison, a decade for each.
For the conspiracy to pay and receive health care kickbacks conviction, he faces up to five years in prison.
For the conspiracy to defraud the United States and make false statements in connection with health care matters, he faces up to five years in prison.
Cox’s sentencing hearing had yet to be scheduled on Friday evening.