Brett Blackman Convicted in $1 Billion Medicare Fraud Scheme, Exposing $450 Million in Payouts
Updated
Updated · CBS New York · May 14
Brett Blackman Convicted in $1 Billion Medicare Fraud Scheme, Exposing $450 Million in Payouts
6 articles · Updated · CBS New York · May 14
Federal prosecutors said Brett Blackman, 42, used HealthSplash’s DMERx platform to drive more than $1 billion in fraudulent Medicare and other federal health claims, with programs paying out over $450 million.
DOJ said the scheme targeted hundreds of thousands of Medicare beneficiaries for medically unnecessary braces and other equipment, using kickbacks, sham contracts and false doctor orders claiming exams that never happened.
An undercover agent was routed to an overseas call center and pressured to accept multiple braces; prosecutors said a physician note later falsely stated tests had been performed even though the doctor and agent never met.
Blackman was convicted on fraud, kickback and false-statement conspiracy counts, faces up to 20 years on the main charges plus five years on others, and is set for sentencing on Aug. 26.
The verdict adds to a broader Trump administration push against healthcare fraud, especially telemedicine schemes; Blackman’s co-defendant Gary Cox, former DMERx CEO, was sentenced to 15 years in 2025.
How will new federal AI tools proactively stop the next billion-dollar Medicare fraud scheme?
Beyond prison, how will the government recover the hundreds of millions paid out in fraudulent claims?
What can be done to dismantle the foreign call centers that target vulnerable American seniors?
$450 Million Medicare Fraud: The Brett Blackman HealthSplash/DMERx Telemedicine Scheme and Its Impact on U.S. Healthcare
Overview
On May 14, 2026, Brett Blackman was convicted for orchestrating a large telemarketing scheme that targeted senior citizens and defrauded government health care programs. The operation used foreign call centers and spam mailers to generate fraudulent orders, falsely claiming doctors had examined Medicare beneficiaries. Medical professionals were paid to sign these orders without real patient interaction, allowing the scheme to bill Medicare for services never actually provided. This systemic deception highlights the serious impact of healthcare fraud and the importance of ongoing efforts to protect vulnerable populations and the integrity of the healthcare system.