Brace Yourself: Jury Finds Co-Conspirator Guilty in $1.4B Medicare DME Fraud Scheme

By the Constantine Cannon Whistleblower Team

The first week of June is Medicare Fraud Prevention Week, geared toward raising awareness and safeguarding the integrity of a crucial healthcare system on which many Americans rely. While this initiative and this case do not expressly call out to whistleblowers, we are!

This recent government enforcement action concerning a Medicare fraud scheme serves as a reminder that individuals can blow the whistle and come forward with information regarding healthcare fraud.

Medicare Fraud

Whistleblowers can report Medicare fraud involving kickbacks, double billing, upcoding, unbundling, offering unnecessary services and products, and other types of misconduct. These same healthcare fraud schemes often include other programs like Medicaid and TRICARE/CHAMPUS as well.

Gary Cox Was Found Guilty of Defrauding Medicare

On June 3, Gary Cox, 79, was found guilty by a Florida federal jury. Cox was the CEO of Power Mobility Doctor Rx LLC, which operated DMERx. The six charges included participating in a scheme using a web platform called DMERx to coordinate illegal kickbacks and falsely bill Medicare, and other federal healthcare benefit programs, for $1.4 billion worth of unnecessary medical products and DME such as orthotic braces, among other violations.¹

His sentencing date will be announced.²

Cox’s Co-Conspirators

Constantine Cannon previously reported on this case when Kansas-based co-conspirator Gregory Schreck, 50, pleaded guilty in February. Schreck, Cox, and another co-conspirator Brett Blackman allegedly ran Operation Brace Yourself.

Schreck pleaded guilty to one count of conspiracy to commit healthcare fraud in exchange for the dismissal of five other fraud-related charges. He admitted to conspiring with Cox, Blackman, and others to operate HealthSplash Inc., which controlled DMERx and the National Center for Pain LLC. A status conference for Blackman is scheduled on June 27.

U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida commented: “Medicare fraud undermines the integrity of our nation’s most critical healthcare programs… we will relentlessly pursue those who steal from taxpayers and exploit our healthcare system for their own personal gain.”³

Our Firm Helps Healthcare Fraud Whistleblowers

Healthcare fraud enforcement remains a top government priority. Out of the $2.9 billion the government and whistleblowers recovered during 2024, over $1.67 billion (58%) came from matters involving healthcare fraud, according to the DOJ’s annual roundup.

Whistleblowers are instrumental in sharing information that can help with potential enforcement actions. Under the qui tam, or the whistleblower provision of the False Claims Act, private parties (or relators) can file lawsuits on behalf of the United States and may receive up to 30% of the government’s recovery.

Whistleblower partner Alysia Solow commented: “DME-related Medicare fraud harms all Americans. Our firm represents whistleblowers who learn of such misconduct and have the courage to speak up.”

If you would like more information on what it means to be a whistleblower or believe you have information relating to healthcare fraud, please contact us so we can connect you with a member of the experienced Constantine Cannon whistleblower lawyer team for a free and confidential consultation.

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Read Brace Yourself: Jury Finds Co-Conspirator Guilty in $1.4B Medicare DME Fraud Scheme at constantinecannon.com