Software CEO convicted for running $1 billion Medicare fraud scheme

58 minutes ago 4

The proprietor of a healthcare bundle institution was convicted of monolithic Medicare fraud connected Thursday, the Department of Justice said, ending what Acting Attorney General Todd Blanche called "one of the astir egregious fraud schemes successful Florida history."

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

Blackman and his co-conspirators utilized Power Mobility Doctor Rx, LLC, oregon DMERx, a level acquired by HealthSplash successful 2017, to coordinate amerciable kickbacks with telemedicine doctors and pharmacies that would falsely measure Medicare for the unnecessary items, the DOJ said. The fraud was hidden with sham contracts and manipulation of documents.

The strategy included generating "false and fraudulent doctors' orders" that indicated a doc had examined a Medicare beneficiary, erstwhile successful world the doc had small oregon nary enactment with the patient. When an undercover cause posed arsenic a Medicare beneficiary, they were shunted to an overseas telephone center, wherever representatives pushed them to hold to bid aggregate braces, according to the Justice Department. A doctor's enactment claims that a doc conducted assorted tests connected the undercover agent, but the cause and doc ne'er met, the DOJ said.

Blackman and his co-conspirators billed Medicare and different national healthcare payment programs implicit $1 cardinal passim the people of the scheme, the Department of Justice said. Medicare and the different programs paid retired much than $450 million.

Blackman showcased his wealthiness successful a euphony video, including showing disconnected a ample waterfront property. A photograph shared by the Justice Department shows Blackman posing successful golden accessories, including a necklace with a ample dollar sign.

Blackman was convicted of conspiracy to perpetrate healthcare fraud and ligament fraud, conspiracy to wage and person healthcare kickbacks, and conspiracy to defraud the United States and to marque mendacious statements successful transportation with healthcare matters, according to the Department of Justice. He faces a maximum punishment of 20 years successful situation connected the charges of healthcare and ligament fraud, and an further 5 years connected the different counts. A sentencing proceeding is acceptable for Aug. 26.

"This illegitimate cognition stole much than $1 cardinal from American taxpayers — including hundreds of thousands of Medicare beneficiaries," Blanche said successful a statement. "This was cold, calculated, industrial-scale theft targeting the sick and elderly, coercing susceptible radical into buying unnecessary aesculapian equipment. We volition not remainder until each fraudster ripping disconnected the American radical is held accountable."

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

Targeting fraud has been a cardinal precedence of the Trump administration. In April 2026, the Department of Justice announced the creation of the Fraud Division. Mr. Trump has besides established a task force, chaired by Vice President JD Vance, focused connected eliminating fraud. Healthcare fraud, peculiarly successful the hospice and location healthcare space, has been a peculiar people for the administration.

A CBS News investigation uncovered wide signs of potential healthcare fraud successful Los Angeles, including a doc whose Medicare reimbursement claims were dispersed implicit 126 hospice providers. Earlier successful April, 5 radical successful California were arrested for allegedly defrauding the state's Medicaid programme of astir $267 million.

In: