The former founder and chief executive of a health internet company will spend 15 years in prison and pay $452 million after being found guilty of a sprawling scheme that sought about $1.9 billion in false payments from Medicare, according to the U.S. Department of Justice (DOJ).

The operation, built by former CEO Gary Cox and called Power Mobility Doctor Rx, LLC (DMERx), involved doctors, pharmacists, and telemarketers who used personally-identifiable information from Medicare patients to file fraudulent claims to Medicare for orthotic braces and pain creams that the patients did not seek, the DOJ announced Monday.

Adrianne Appel writes regulatory news, policy, and trends for Compliance Week. She previously reported about policy developments for Bloomberg Law and Bloomberg Government. Email: adrianne.appel@complianceweek.com LinkedIn:...