Owner of Healthcare Software Company Convicted of $1 Billion Fraud Conspiracy

Gregory Schreck, of Johnson County, Kansas, pleaded guilty to operating an online platform that generated false doctors’ orders to defraud Medicare, VA, and other federal healthcare benefit programs of more than $1 billion. Through their company, DMERx, Schreck and his co-conspirators targeted hundreds of thousands of beneficiaries to provide their personally identifiable information and agree to accept medically unnecessary orthotic braces, pain creams, and other items. The loss to VA was more than $1 million. This investigation was conducted by the VA OIG, FBI, Department of Health and Human Services OIG, and Defense Criminal Investigative Service.

Gary Cox, of Maricopa County, Arizona, the CEO of Power Mobility Doctor Rx, LLC (DMERx), was convicted for his role in operating a platform that generated false doctors’ orders to defraud Medicare and other federal healthcare benefit programs of more than $1 billion. Cox and his co-conspirators targeted hundreds of thousands of Medicare beneficiaries who provided their personally identifiable information and agreed to accept medically unnecessary orthotic braces, pain creams, and other items through misleading mailers, television advertisements, and calls from offshore call centers. Cox and his co-conspirators owned, controlled, and operated DMERx, an internet-based platform that generated false and fraudulent doctors’ orders for these items. As part of the scheme, Cox connected pharmacies, durable medical equipment (DME) suppliers, and marketers with telemedicine companies that would accept illegal kickbacks and bribes in exchange for signed doctors’ orders transmitted using the DMERx platform. Cox and his co-conspirators received payments for coordinating these illegal kickback transactions and referring the completed doctors’ orders to the DME suppliers, pharmacies, and telemarketers that paid kickbacks and bribes for the orders. The VA OIG, HHS OIG, FBI, and the Department of Defense OIG’s Defense Criminal Investigative Service investigated this case.

Gary Cox, CEO of Power Mobility Doctor Rx, LLC, was sentenced to 15 years in prison and ordered to pay more than $452 million in restitution for conspiring to defraud Medicare and other federal health care benefit programs of more than $1 billion by operating an online platform that generated false doctors’ orders used to support fraudulent claims for various medical items. He and his co-conspirators targeted Medicare beneficiaries who provided their personally identifiable information and agreed to accept medically unnecessary orthotic braces, pain creams, and other items through misleading mailers, television advertisements, and calls from offshore call centers. As part of the scheme, Cox connected pharmacies, durable medical equipment suppliers, and marketers with telemedicine companies that would accept illegal kickbacks and bribes in exchange for signed doctors’ orders. In June 2025, Cox was convicted 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 in connection with health care matters. The VA OIG, Health and Human Services OIG, FBI, and  Defense Criminal Investigative Service investigated the case.