Software CEO Convicted In Massive $1 Billion Medicare Fraud Scheme Targeting Seniors

In a verdict hailed by federal officials as a major blow against one of the most egregious health care fraud operations in Florida history, a jury in the Southern District of Florida convicted Brett Blackman, 42, of Johnson County, Kansas, on multiple conspiracy charges related to a sprawling scheme that bilked Medicare and other federal programs out of more than $1 billion.

Blackman, the founder, owner, and CEO of HealthSplash, was found guilty of conspiracy to commit health care fraud and wire 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. He faces a maximum of 20 years in prison on the primary fraud counts, plus additional time on the others. Sentencing is scheduled for August 26, 2026, according to the DOJ. 

From "Healthcare Innovator" to Fraud Mastermind

Prior to his legal troubles, Blackman positioned himself as a serial entrepreneur and healthcare technology disruptor. He described HealthSplash as a visionary platform built on blockchain and smart contracts to connect patients, providers, servicers, and payers with transparent, friction-free care. The company aimed to eliminate suffering by delivering healthcare data instantly and shifting the system from reactive to proactive.

Blackman had expanded a medical compliance documentation firm called PMDRx into DMERx (Power Mobility Doctor Rx, LLC) to broaden its offerings. HealthSplash acquired DMERx in September 2017. Court documents portray a starkly different reality: the platform became a tool for generating false and fraudulent doctors’ orders for durable medical equipment (DME), primarily orthotic braces, and other prescriptions.

How the Scheme Worked

Prosecutors said Blackman and co-conspirators aggressively targeted hundreds of thousands of Medicare beneficiaries - often vulnerable seniors - through foreign call centers, spam mailers, and telemarketing. The goal: pressure recipients into accepting medically unnecessary equipment.

Once beneficiaries agreed, the DMERx platform routed orders to telemedicine doctors who signed them—frequently with little or no patient interaction, and sometimes while falsely claiming in-person tests had occurred. Suppliers and pharmacies paid illegal kickbacks for these orders, then billed Medicare and other federal programs (including those serving veterans and military families) more than $1 billion. Federal programs paid out over $450 million on the fraudulent claims.

Evidence at trial included testimony from an undercover agent who posed as a beneficiary. A foreign call center pushed multiple braces on the agent, and a doctor signed orders claiming tests that could only be done in person - despite no real interaction. Blackman’s team allegedly used sham contracts and order manipulation to evade audits.

“This was not health care. It was a billion-dollar fraud machine,” said U.S. Attorney for the Southern District of Florida Jason A. Reding Quiñones. Officials emphasized the scheme’s industrial scale and its exploitation of the sick and elderly.

Co-defendant Gary Cox, former CEO of DMERx, was convicted in a prior trial in June 2025 and sentenced to 15 years in prison.

Flashy Lifestyle Amid Alleged Fraud

Federal releases highlighted Blackman’s lavish displays of wealth, including a music video featuring a waterfront mansion and photos of him adorned in gold accessories, including a large dollar-sign necklace.

Acting Attorney General Todd Blanche called it “cold, calculated, industrial-scale theft.” FBI and HHS-OIG officials stressed that no web of sham companies would protect fraudsters from accountability.

The case aligns with broader DOJ efforts, including the recent launch of a dedicated Fraud Division and support for President Trump’s Task Force to Eliminate Fraud.