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

HealthSplash founder and CEO Brett Blackman, 42, was found guilty by a federal jury in Florida on Wednesday of conspiracy to commit healthcare fraud, wire fraud, kickbacks and false statements. The DOJ called it one of Florida’s most egregious fraud schemes.

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HealthSplash’s 2017 acquisition of Power Mobility Doctor Rx (DMERx) created a platform that fabricated doctors’ orders for equipment. Physicians signed prescriptions for orthotic braces, pain creams and other devices despite contact, while marketing used mailers, TV ads and call centers to persuade Medicare beneficiaries to purchase items. Agents steered a subject to call center that recommended braces without a clinical exam. Scheme generated over $1 billion in Medicare claims, of which $450 million was paid.

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Blackman controlled HealthSplash and DMERx. The scheme affected hundreds of thousands of Medicare beneficiaries, and Blackman faces up to 20 years for healthcare and wire-fraud conspiracies, plus five years for each kickback and false-statement count. Gary Cox, former DMERx CEO, was earlier convicted and sentenced to 15 years. Acting Attorney General Todd Blanche led the DOJ response; Assistant Attorney General Colin M. called the conduct a massive telemarketing scheme. McDonald of the DOJ’s National Fraud Enforcement Division highlighted aggressive prosecution. The case was pursued under Trump anti-fraud initiatives, including a task force chaired by Vice President JD Vance and the new Fraud Division.

Washington Examiner

Acting Attorney General Todd Blanche said the operation represented a theft of taxpayer funds and stressed the DOJ’s resolve to hold fraudsters accountable. Assistant Attorney General Colin M. highlighted the use of foreign call centers and spam mailers to target senior citizens. McDonald of the National Fraud Enforcement Division emphasized aggressive prosecution. The remarks were framed within the Trump administration’s broader anti-fraud effort.

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• “This illegitimate operation stole more than $1 billion from American taxpayers — including hundreds of thousands of Medicare beneficiaries.” — Todd Blanche, Acting Attorney General

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• “This was cold, calculated, industrial-scale theft targeting the sick and elderly, coercing vulnerable people into buying unnecessary medical equipment.” — Todd Blanche, Acting Attorney General

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• “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.” — Todd Blanche, Acting Attorney General

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• “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,” — Colin M., Assistant Attorney General

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Blackman’s sentencing is scheduled for August 26. The DOJ’s newly formed Fraud Division will continue aggressive health-care fraud prosecutions, and the Vice President-led anti-fraud task force remains active in monitoring Medicare and Medicaid programs.

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