HealthSplash CEO Brett Blackman Convicted in $1 Billion Medicare Fraud Scheme

May 14, 2026 - 12:38
Updated: 19 days ago
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HealthSplash CEO Brett Blackman Convicted in $1 Billion Medicare Fraud Scheme
Photo source: https://www.cbsnews.com/news/brett-blackman-healthsplash-con...

The owner of a healthcare software company was convicted of massive Medicare fraud on Thursday, the Department of Justice said. Acting Attorney General Todd Blanche called it "one of the most egregious fraud schemes in Florida history."

HealthSplash owner and CEO Brett Blackman, 42, and co-conspirators aggressively targeted hundreds of thousands of Medicare beneficiaries to get them to accept medically unnecessary products including orthotic braces, according to a DOJ news release.

Blackman and his co-conspirators used Power Mobility Doctor Rx, LLC, or DMERx, a platform acquired by HealthSplash in 2017, to coordinate illegal kickbacks with telemedicine doctors and pharmacies that falsely billed Medicare for the unnecessary items, the DOJ said. The fraud was hidden with sham contracts and manipulation of documents.

The scheme included generating false and fraudulent doctors' orders that indicated a doctor had examined a Medicare beneficiary, when in reality the doctor had little or no interaction with the patient. An undercover agent posing as a Medicare beneficiary was shunted to an overseas call center, where representatives pushed the agent to agree to order multiple braces, according to the Justice Department. A doctor's note claimed that a physician conducted various tests on the undercover agent, but the agent and doctor never met, the DOJ said.

Blackman and his co-conspirators billed Medicare and other federal healthcare benefit programs over $1 billion throughout the course of the scheme, the Department of Justice said. Medicare and the other programs paid out more than $450 million.

Blackman showcased his wealth in a music video, including a large waterfront property. A photo shared by the Justice Department shows Blackman posing in gold accessories, including a necklace with a large dollar sign.

Blackman was convicted of conspiracy to commit healthcare fraud and wire fraud, conspiracy to pay and receive healthcare kickbacks, and conspiracy to defraud the United States and to make false statements in connection with healthcare matters, according to the Department of Justice. He faces a maximum penalty of 20 years in prison on the charges of healthcare and wire fraud, and an additional five years on the other counts. A sentencing hearing is set for Aug. 26.

"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, coercing vulnerable people into buying unnecessary medical equipment. We will not rest until every fraudster ripping off the American people is held accountable."

Blackman's co-defendant Gary Cox was convicted in June 2025 and sentenced to 15 years in prison. Cox was the CEO of DMERx.

Targeting fraud has been a key priority of the Trump administration. In April 2026, the Department of Justice announced the creation of the Fraud Division. Mr. Trump has also established a task force, chaired by Vice President JD Vance, focused on eliminating fraud. Healthcare fraud, particularly in the hospice and home healthcare space, has been a particular target for the administration.

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