{"id":603915,"date":"2026-05-19T03:00:00","date_gmt":"2026-05-19T03:00:00","guid":{"rendered":"https:\/\/buglecall.org\/?p=603915"},"modified":"2026-05-19T03:00:00","modified_gmt":"2026-05-19T03:00:00","slug":"software-ceo-convicted-in-massive-1-billion-medicare-fraud-scheme-targeting-seniors","status":"publish","type":"post","link":"https:\/\/buglecall.org\/?p=603915","title":{"rendered":"Software CEO Convicted In Massive $1 Billion Medicare Fraud Scheme Targeting Seniors"},"content":{"rendered":"<p><span class=\"field field--name-title field--type-string field--label-hidden\">Software CEO Convicted In Massive $1 Billion Medicare Fraud Scheme Targeting Seniors<\/span><\/p>\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p>In a verdict hailed by federal officials as a major blow against one of the most egregious health care fraud operations in Florida history, <strong>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.<\/strong><\/p>\n<p><a data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/AA23cA9r.img_80.jpg?itok=X97i-Usg\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/AA23cA9r.img_80.jpg?itok=X97i-Usg\"><\/a><\/p>\n<figure role=\"group\" class=\"caption caption-img inline-images image-style-inline-images\"><img fetchpriority=\"high\" decoding=\"async\" alt=\"\" data-entity-type=\"file\" data-entity-uuid=\"6f111d8f-19eb-4e7b-b8b8-96592c10f6b8\" data-responsive-image-style=\"inline_images\" height=\"595\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/AA23cA9r.img_80.jpg?itok=X97i-Usg\" width=\"500\" \/><figcaption><em>Brett Blackman \/ Credit: Department of Justice<\/em><\/figcaption><\/figure>\n<p><\/p>\n<p>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, <a href=\"https:\/\/www.justice.gov\/opa\/pr\/owner-health-care-software-company-convicted-1-billion-dollar-medicare-fraud-conspiracy?ftag=MSF0951a18\">according<\/a> to the DOJ.\u00a0<\/p>\n<h2>From &#8220;Healthcare Innovator&#8221; to Fraud Mastermind<\/h2>\n<p>Prior to his legal troubles, <strong>Blackman positioned himself as a serial entrepreneur and healthcare technology disruptor.<\/strong> He described HealthSplash as a visionary platform <strong>built on blockchain and smart contracts<\/strong> 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.<\/p>\n<p>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\u2019 orders for durable medical equipment (DME), primarily orthotic braces, and other prescriptions.<\/p>\n<h2>How the Scheme Worked<\/h2>\n<p>Prosecutors said <strong>Blackman and co-conspirators aggressively targeted hundreds of thousands of Medicare beneficiaries<\/strong>\u00a0&#8211; often vulnerable seniors &#8211; through <strong>foreign call centers, spam mailers, and telemarketing.<\/strong> The goal: pressure recipients into accepting medically unnecessary equipment.<\/p>\n<p>Once beneficiaries agreed, the DMERx platform routed orders to telemedicine doctors who signed them\u2014frequently 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.<\/p>\n<p>Evidence at trial included<strong> testimony from an undercover agent who posed as a beneficiary. <\/strong>A foreign call center pushed multiple braces on the agent, and a doctor signed orders claiming tests that could only be done in person &#8211; despite no real interaction. Blackman\u2019s team allegedly used sham contracts and order manipulation to evade audits.<\/p>\n<p>\u201c<strong>This was not health care. It was a billion-dollar fraud machine<\/strong>,\u201d said U.S. Attorney for the Southern District of Florida Jason A. Reding Qui\u00f1ones. Officials emphasized the scheme\u2019s industrial scale and its exploitation of the sick and elderly.<\/p>\n<p>Co-defendant Gary Cox, former CEO of DMERx, was convicted in a prior trial in June 2025 and sentenced to 15 years in prison.<\/p>\n<h2>Flashy Lifestyle Amid Alleged Fraud<\/h2>\n<p>Federal releases highlighted <strong>Blackman\u2019s 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.<\/strong><\/p>\n<p>Acting Attorney General Todd Blanche called it \u201ccold, calculated, industrial-scale theft.\u201d FBI and HHS-OIG officials stressed that no web of sham companies would protect fraudsters from accountability.<\/p>\n<p><a data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/AA23cxmL.img_80.jpg?itok=V3YFkDMl\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/AA23cxmL.img_80.jpg?itok=V3YFkDMl\"><\/a><\/p>\n<figure role=\"group\" class=\"caption caption-img inline-images image-style-inline-images\"><img decoding=\"async\" alt=\"\" data-entity-type=\"file\" data-entity-uuid=\"5ca14c2f-2f10-478e-afa1-c88e52bd31f1\" data-responsive-image-style=\"inline_images\" height=\"323\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/AA23cxmL.img_80.jpg?itok=V3YFkDMl\" width=\"500\" \/><figcaption><em>A photo of the mansion shown in Blackman&#8217;s music video. \/ Credit: Department of Justice<\/em><\/figcaption><\/figure>\n<p><\/p>\n<p>The case aligns with broader DOJ efforts, including the recent launch of a dedicated Fraud Division and support for President Trump\u2019s Task Force to Eliminate Fraud.<\/p>\n<\/div>\n<p>      <span class=\"field field--name-uid field--type-entity-reference field--label-hidden\"><a title=\"View user profile.\" href=\"https:\/\/cms.zerohedge.com\/users\/tyler-durden\" lang=\"\" class=\"username\" xml:lang=\"\">Tyler Durden<\/a><\/span><br \/>\n<span class=\"field field--name-created field--type-created field--label-hidden\">Mon, 05\/18\/2026 &#8211; 23:00<\/span><img decoding=\"async\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/AA23cA9r.img_80.jpg?itok=X97i-Usg\" title=\"Software CEO Convicted In Massive $1 Billion Medicare Fraud Scheme Targeting Seniors\" \/><\/p>","protected":false},"excerpt":{"rendered":"<p>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&hellip; <a class=\"more-link\" href=\"https:\/\/buglecall.org\/?p=603915\">Continue reading <span class=\"screen-reader-text\">Software CEO Convicted In Massive $1 Billion Medicare Fraud Scheme Targeting Seniors<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":603916,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[17,22,13],"tags":[],"class_list":["post-603915","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-border-security","category-immigration","category-immigration-reform","entry"],"_links":{"self":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts\/603915","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=603915"}],"version-history":[{"count":0,"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts\/603915\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/media\/603916"}],"wp:attachment":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=603915"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=603915"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=603915"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}