Federal jurors in Florida found the founder of a health care tech company guilty for running a large telemedicine and durable medical equipment fraud that billed more than $1 billion to Medicare and other federal programs.
Brett Blackman, 42, of Johnson County, Kansas, was convicted after prosecutors said his company operated a platform that produced fake doctor orders and prescriptions for orthotic braces and other durable medical equipment. Court evidence showed the scheme used aggressive telemarketing and coordination with telemedicine companies, pharmacies, and DME suppliers to push unnecessary products to vulnerable seniors.
The operation centered on HealthSplash and a piece it acquired, Power Mobility Doctor Rx, LLC (DMERx), in September 2017, which prosecutors say generated fraudulent doctors’ orders for billing. Blackman is accused of arranging kickbacks and taking referral fees while placing marketers, suppliers, and telemedicine providers into the chain that produced bogus claims.
Prosecutors say the conspiracy targeted hundreds of thousands of Medicare beneficiaries and relied on foreign call centers and spam mailers to drive acceptances for medically unnecessary equipment. Testimony at trial included an undercover agent who posed as a Medicare beneficiary and described a call center push for multiple braces and a telemedicine doctor signing orders without meaningful interaction. The trial record showed some doctors signed orders that claimed in-person tests that never happened.
“The Department of Justice crushed one of the most egregious fraud schemes in Florida history,” said Acting Attorney General Todd Blanche. “This illegitimate operation stole more than $1 billion from American taxpayers — including hundreds of thousands of Medicare beneficiaries. This was cold, calculated, industrial-scale theft targeting the sick and elderly, coercing vulnerable people into buying unnecessary medical equipment. We will not rest until every fraudster ripping off the American people is held accountable.”
Officials say Blackman and his co-conspirators billed Medicare and other federal health care benefit programs for over $1 billion in total claims tied to the scheme, with more than $450 million actually paid out on those claims. Evidence introduced at trial indicates the group tried to hide the operation with sham contracts and by manipulating doctors’ orders to dodge audits.
“The defendant orchestrated a massive telemarketing scheme that used foreign call centers and spam mailers to target our country’s senior citizens and defraud government health care benefit programs,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “The Fraud Division will continue to aggressively prosecute health care fraud schemes, hold criminals accountable, and protect the integrity of America’s health care system.”
Investigators detailed how DMERx enabled doctors to sign orders without real examinations, and how pharmacies and DME suppliers paid illegal kickbacks for those referrals. Those suppliers and pharmacies ultimately billed Medicare and other insurers more than $1 billion, according to the evidence, and concealment tactics were used to try to keep the scheme under the radar.
“This conviction further underscores our dedication to protecting the integrity of military healthcare from large-scale exploitation,” said Special Agent in Charge Jason J. Sargenski of the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS), Southeast Field Office. “Fraud of this magnitude drains vital resources and jeopardizes the care promised to our service members, retirees, and their families. DCIS, alongside our partners, remains steadfast in rooting out and dismantling these schemes, ensuring every conspirator faces justice.”
Blackman was convicted on counts including 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. His co-defendant, Gary Cox, was convicted in a separate trial and received a 15-year sentence for his role in the same network of fraud.
Blackman faces statutory maximums that include 20 years for the health care fraud and wire fraud conspiracy, five years for the kickback conspiracy, and five years for conspiracy to defraud and make false statements; a federal judge will set his sentence after considering guidelines and other factors. A sentencing hearing is scheduled for August 26, 2026, where the court will determine the appropriate punishment for the convictions.
“This verdict shows exactly what happens when people exploit Medicare for personal gain,” said Acting Deputy Inspector General for Investigations Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General (HHS‑OIG). “The actions of this defendant severely undermined the integrity of the Medicare program. Working alongside our law enforcement partners, HHS‑OIG will continue to relentlessly pursue those who try to profit by defrauding federal health care programs.”
The case was investigated by HHS‑OIG, the FBI, VA‑OIG, and DCIS, and prosecuted by trial attorneys from the Criminal Division’s Fraud Section with assistance from the Fraud Section’s Special Matters Unit. The Department of Justice has recently centralized more resources to pursue health care fraud, noting new structures aimed at aggressively prosecuting large-scale scams and supporting White House efforts to eliminate fraud and protect federal benefit programs.
