A federal jury in South Florida has convicted Brett Blackman, 42, founder and owner of health care software company HealthSplash, for orchestrating one of the largest Medicare fraud operations in U.S. history. The scheme, valued at over $1 billion, relied on fake doctors’ orders, illegal kickbacks, and systematic targeting of hundreds of thousands of vulnerable Medicare beneficiaries.

Blackman 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 with false statements. The operation centered on Blackman’s internet-based platform, Power Mobility Doctor Rx LLC (DMERx), which generated fraudulent doctors’ orders for durable medical equipment and bogus prescriptions. Co-conspirators aggressively pressured Medicare beneficiaries—often elderly or sick individuals—to accept medically unnecessary orthotic braces and other items. Purported telemedicine doctors signed false orders without meaningful patient interaction, enabling suppliers to bill Medicare and other insurers for illegal services.

Medicare and other insurers paid out more than $450 million based on these fraudulent claims. Blackman faces up to 20 years in prison for health care fraud conspiracy alone, with sentencing scheduled for August 26, 2026. A co-defendant, Gary Cox, previously received a 15-year federal prison sentence.

The conviction follows the Department of Justice’s declaration that the scheme constituted “industrial-scale theft targeting the sick and elderly.” Federal authorities detail how Blackman and his network exploited Medicare’s system, with doctors rubber-stamping orders for patients they never examined—a practice that allowed suppliers to bill illegally for over $1 billion in services.

This case is part of a broader federal crackdown on Medicare fraud. Just days before Blackman’s conviction, the Centers for Medicare & Medicaid Services (CMS) announced a six-month nationwide moratorium on new Medicare enrollment for hospices and home health agencies under Vice President JD Vance’s Anti-Fraud Task Force. The action aims to halt improper billing by suspected fraudsters while protecting existing providers. Recent enforcement in Los Angeles alone suspended payments to 773 hospices and 23 home health agencies, representing $70 million in frozen funds.

Federal investigators describe the scheme as a pattern of organized theft targeting vulnerable seniors, with billions of taxpayer dollars diverted through fraudulent claims. The DOJ’s actions underscore a decisive shift toward ending systemic abuse of Medicare by criminal networks that exploit medical necessity for profit.