A Johnson County, Kansas, software executive will spend 19 years in federal prison for running an online platform that generated false doctors’ orders for medical braces and other equipment. The Justice Department revealed the penalty for Brett Blackman on October 15.
Equipment suppliers and pharmacies in the scheme billed Medicare and other insurers more than $1 billion, prosecutors said. Those insurers paid more than $450 million.
Fraudulent claims for orthopedic braces were filed on behalf of over 346,000 Medicare recipients, averaging roughly four braces per individual. Authorities allege that participants coerced beneficiaries into accepting unnecessary braces and additional devices.
The Scheme
Blackman held ownership and executive leadership at HealthSplash, which acquired Power Mobility Doctor Rx (operating as DMERx) in September 2017. According to prosecutors, DMERx functioned as an online service that fabricated false physician orders for durable medical equipment and related supplies.
The scheme connected pharmacies, equipment suppliers, and marketers with telemedicine companies that took kickbacks and bribes in exchange for signed orders. Blackman personally benefited from a portion of these referral payments.
Doctors were paid to sign orders with little or no contact with patients. In one undercover operation, a foreign call center pushed an agent posing as a beneficiary to accept multiple braces. A doctor then signed an order claiming in-person tests had been done, even though the doctor never spoke with the agent. Additionally, over 1,200 beneficiaries each received prescriptions for at least 21 orthotic devices via DMERx, showing the scale of the deception.
Conviction and Sentence
A federal jury in the Southern District of Florida convicted Blackman earlier this year after a 23-day trial, according to the Justice Department’s conviction announcement. He was found guilty of conspiracy to commit health care fraud and wire fraud, conspiracy to pay and receive kickbacks, and conspiracy to defraud the United States and make false statements related to health care matters.
The health care fraud and wire fraud conspiracy carried a maximum of 20 years in prison, and each of the other two conspiracy counts carried a maximum of five years. Final determinations regarding restitution and asset forfeiture are pending judicial review.
It’s also worth noting that co-defendant Gary Cox was sentenced to 15 years in prison in December 2025, demonstrating the severity of the penalties for those involved in the scheme.
Impact on Taxpayer Programs
The case was investigated by the HHS Office of Inspector General, the FBI, the Department of Veterans Affairs Office of Inspector General and the Defense Criminal Investigative Service. Their involvement reflects how the scheme reached beyond Medicare to programs that serve veterans and military families, including TRICARE.
“The Department of Justice and our agency partners dismantled one of the largest telemedicine fraud schemes ever,” said Assistant Attorney General Colin M. McDonald of the department’s National Fraud Enforcement Division.
Protecting Yourself From Medicare Equipment Scams
Suspected fraud can be reported to the HHS Office of Inspector General online or at 1-800-HHS-TIPS, or to Medicare at 1-800-MEDICARE (1-800-633-4227). Include names, dates, and copies of bills or notices when possible.
