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HealthSplash Owner Convicted in $1 Billion Medicare Fraud Scheme

The verdict underscores a stepped-up federal crackdown on large health care scams.

Overview

  • A federal jury in the Southern District of Florida, which delivered its verdict Thursday, found Brett Blackman guilty on three conspiracy counts tied to a nationwide billing scheme.
  • Prosecutors said Blackman used the DMERx platform, acquired in 2017, to create fake doctors’ orders for durable medical equipment after offshore call centers pushed seniors to accept orthotic braces and other items.
  • Telemedicine doctors were paid to sign orders without real exams, which let pharmacies and equipment suppliers submit more than $1 billion in claims for medically unnecessary gear.
  • Medicare and other insurers paid over $450 million on those claims, and Blackman now faces up to 20 years on the lead count with sentencing set for August 26, 2026.
  • HHS‑OIG, the FBI, VA‑OIG, and DCIS investigated the case, and DOJ leaders cite it as a model for the new Fraud Division and the Vice President’s task force, while a prior trial sent co‑defendant Gary Cox to prison for 15 years.