Brett Blackman, the 42-year-old owner and CEO of healthcare software company HealthSplash, was convicted Thursday of orchestrating a massive Medicare fraud scheme that billed the federal healthcare program more than $1 billion, according to the Department of Justice.
Background
Blackman acquired Power Mobility Doctor Rx, LLC, known as DMERx, in 2017 and used the platform to coordinate what Acting Attorney General Todd Blanche called "one of the most egregious fraud schemes in Florida history." The scheme targeted hundreds of thousands of Medicare beneficiaries, persuading them through aggressive marketing tactics to accept medically unnecessary products, primarily orthotic braces.
The operation involved a complex network of telemedicine doctors, pharmacies, and overseas call centers that worked together to submit false claims to Medicare. Blackman and his co-conspirators used sham contracts and manipulated documents to hide the illegal nature of their enterprise.
"This illegitimate operation stole more than $1 billion from American taxpayers — including hundreds of thousands of Medicare beneficiaries," Blanche said in a statement. "This was cold, calculated, industrial-scale theft targeting the sick and elderly."
The Investigation
Federal investigators uncovered that Blackman's scheme generated false and fraudulent doctors' orders indicating a physician had examined a Medicare beneficiary when in reality the doctor had little or no interaction with the patient. When an undercover agent posed as a Medicare beneficiary during the investigation, they were routed to an overseas call center where representatives pushed them to agree to order multiple braces.
The scheme included illegal kickbacks coordinated through DMERx between telemedicine doctors and pharmacies that would falsely bill Medicare for the unnecessary medical equipment. Blackman allegedly showcased his wealth from the fraud in a music video, including footage of a large waterfront property and gold accessories bearing dollar signs.
The Charges
Blackman was convicted on multiple counts: conspiracy to commit healthcare fraud and wire fraud, conspiracy to pay and receive healthcare kickbacks, and conspiracy to defraud the United States and make false statements in connection with healthcare matters. Medicare and other federal healthcare benefit programs paid out more than $450 million as a result of the scheme.
He faces a maximum penalty of 20 years in prison on the healthcare fraud and wire fraud charges, plus an additional five years on the remaining conspiracy counts. A sentencing hearing is scheduled for Aug. 26 before a federal court.
Key Takeaways
- Brett Blackman, CEO of HealthSplash, convicted of orchestrating over $1 billion in false Medicare billings
- Scheme targeted hundreds of thousands of elderly and vulnerable Medicare beneficiaries with unnecessary orthotic braces
- Operation involved overseas call centers, telemedicine doctors, and illegal kickbacks through DMERx platform
- More than $450 million was paid out by federal healthcare programs before the scheme was uncovered
- Co-defendant Gary Cox, CEO of DMERx, previously convicted and sentenced to 15 years in prison
What's Next
Blackman's sentencing hearing is scheduled for Aug. 26 in federal court. The conviction marks a significant victory for the Justice Department's Fraud Division, which was created in April 2026 as part of the Trump administration's priority targeting healthcare fraud. Vice President JD Vance chairs a task force focused on eliminating fraud against federal programs.
The case remains ongoing as prosecutors continue to pursue other co-conspirators involved in the scheme.