A federal jury in Florida has convicted a Kansas man in connection with a billion-dollar healthcare fraud scheme, a criminal enterprise that systematically siphoned over $450 million from Medicare and other federal health programs. Brett Blackman, 42, of Johnson County, was found guilty on Wednesday, May 14, 2026, 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 to making false statements in connection with health care matters. His conviction marks a significant victory for federal prosecutors in dismantling what the Department of Justice described as an “industrial-scale theft targeting the sick and elderly.”
The Architect of Deception: Brett Blackman’s Role
At the heart of this sprawling fraud was Brett Blackman, the owner and controller of HealthSplash. In September 2017, HealthSplash acquired Power Mobility Doctor Rx LLC (DMERx), an internet-based platform that would become instrumental in the illicit operation. Prosecutors revealed that Blackman and his co-conspirators leveraged DMERx to generate false and fraudulent doctors’ orders for durable medical equipment (DME) and prescriptions for other items.
The scheme was a sophisticated web of illicit connections. Blackman and his associates acted as conduits, linking pharmacies, medical suppliers, and aggressive marketers with telemedicine companies willing to accept kickbacks and bribes. In exchange for these illicit payments, doctors associated with these telemedicine companies would sign off on bogus orders, all facilitated through Blackman’s DMERx online platform. A significant portion of these kickbacks and bribes, prosecutors allege, flowed directly into the pockets of Blackman and his co-conspirators.
“The Department of Justice crushed one of the most egregious fraud schemes in Florida history. 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.”
— Acting Attorney General Todd Blanche
The Scope of the Billion-Dollar Healthcare Fraud Scheme
The human cost of this billion-dollar healthcare fraud scheme is staggering. Hundreds of thousands of Medicare beneficiaries, many of them elderly and vulnerable, were pressured by foreign call centers and spam mailers to accept medically unnecessary equipment and other health-related items. These individuals, often unaware of the fraudulent nature of the solicitations, were coerced into receiving items they neither needed nor requested. Once these false doctors’ orders were generated and signed, suppliers and pharmacies would then bill Medicare and other federal health care programs. In total, prosecutors estimate that the co-conspirators billed federal programs over $1 billion, with more than $450 million successfully paid out.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division emphasized the predatory nature of the operation: “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.”
Unraveling the Deception
Blackman and his co-conspirators employed elaborate tactics to conceal their illicit activities, including creating fake contracts and manipulating doctors’ orders to evade Medicare audits. However, their intricate web of deceit began to unravel when an undercover investigator, posing as a patient, became a target of the scheme. The investigator was pressured by a foreign call center to obtain multiple braces, and a doctor, without any actual contact or examination, signed bogus orders for these braces using Blackman’s DMERx platform.
This critical piece of evidence confirmed the systemic fraud. Blackman, along with his co-conspirators, was indicted in 2023. The investigation and subsequent prosecution highlight the relentless efforts of federal authorities to combat sophisticated financial crimes that exploit public health systems and prey on vulnerable populations.
Consequences and Lingering Questions
The conviction of Brett Blackman is a significant milestone in the broader crackdown on this billion-dollar healthcare fraud scheme. Blackman now faces a maximum penalty of up to 30 years in federal prison, with his sentencing hearing scheduled for August 26. His co-conspirator, Gary Cox, 80, was previously sentenced in June 2025 to 15 years in federal prison, underscoring the severity of the crimes committed.
This case serves as a stark reminder of the constant vigilance required to protect public funds and vulnerable citizens from predatory schemes. The sheer scale of the fraud – over $1 billion billed and $450 million paid out – demonstrates the sophisticated nature of modern financial crime. For consumers, the lesson is clear: be wary of unsolicited calls or communications pressuring you to accept medical equipment or services, especially if they claim to be covered by Medicare. Always verify with your primary care physician or Medicare directly. For financial institutions and healthcare providers, robust internal controls, stringent compliance measures, and a commitment to transparent operations are paramount in preventing similar industrial-scale theft.
