A federal jury convicted the CEO behind DMERx, an online platform that generated doctors' orders for braces and prescriptions, after Medicare and other insurers paid out more than $450 million.
By Katie Coffee
Medicare was billed for orthotic braces for more than 346,000 beneficiaries through a single web platform, an average of four braces each, according to federal prosecutors. On Wednesday, Oct. 14, the man who ran that platform was sentenced to 19 years in federal prison [1][2].
Background
Brett Blackman, 43, of Johnson County, Kansas, owned, controlled and served as chief executive of HealthSplash. In September 2017 HealthSplash acquired Power Mobility Doctor Rx, LLC, known as DMERx [2][4]. The Justice Department describes DMERx as an internet-based platform that generated false and fraudulent doctors' orders for durable medical equipment and prescriptions for other items [2][4].
After a 23-day jury trial that ended in April 2026, Blackman was convicted of three conspiracy counts: 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 in connection with health care matters [2][3]. The Justice Department announced the sentence on Oct. 15 [1].
What Happened
According to the evidence as summarized by the Justice Department, DMERx connected pharmacies, medical equipment suppliers and marketers with telemedicine companies that accepted kickbacks and bribes in exchange for signed doctors' orders. Blackman and his co-conspirators took a cut in exchange for the referrals [2][4].
The doctors involved were paid to sign orders with little or no interaction with patients, and in some cases none at all. The orders falsely stated that a physician had examined and treated the beneficiary [2][3]. Prosecutors said the scheme targeted hundreds of thousands of Medicare beneficiaries across the country to accept medically unnecessary orthotic braces and other items [3].
One example came from an undercover operation. A foreign call center pushed an undercover agent, posing as a Medicare beneficiary, to accept multiple braces. A doctor then signed orders stating that tests had been performed that can only be done in person, even though the doctor never spoke to the agent [2][3]. To avoid Medicare audits, the participants used sham contracts and removed references to telemedicine from the orders [3][4].
The totals are large. The government says more than $1 billion was billed to Medicare and other federal health care programs, and more than $450 million was paid [1][2][3]. More than 1,200 beneficiaries were billed for at least 21 orthotics each prescribed through DMERx [2][3]. That is, to put it gently, a great deal of support for one person.
The Case and the Response
Because a jury returned guilty verdicts, the core charges are no longer allegations. The detailed account of how the scheme worked, however, comes from the Justice Department's description of the trial evidence [2][4].
The case was investigated by HHS-OIG, the FBI, the VA Office of Inspector General and the Defense Criminal Investigative Service, and was prosecuted by the Fraud Division's Health Care Fraud Section [4]. Assistant Attorney General Colin M. McDonald said the government had "dismantled one of the largest telemedicine fraud schemes ever" [2].
A co-defendant, Gary Cox, was sentenced in December 2025 to 15 years in prison [2][3]. Restitution and forfeiture will be determined by the court at a later date [2][3]. None of the reports reviewed for this article included a statement from Blackman or his attorneys, and none said whether he plans to appeal.
Clinical and Patient Implications
The case shows what can happen when a physician's signature is separated from a real clinical encounter. Every order in this scheme carried a doctor's name, and the paperwork claimed examinations and tests that, by the government's account, never took place [2][3]. For clinicians, it is a reminder that signing an order for a patient they have not meaningfully evaluated can make them part of the fraud, not a bystander to it.
For patients, the scheme began with outreach rather than with a medical need: an unsolicited call center pitch for braces [2][3]. Beneficiaries who received devices they did not request or need were also, in effect, given a medical record listing treatment that never happened. The case is also unhelpful for legitimate telehealth, which relies on public trust that a remote visit is a real visit.
What Comes Next
The court will set restitution and forfeiture amounts later [2][3]. The case sits within the work of the Health Care Fraud Strike Force, which the Justice Department says has charged more than 6,200 defendants who collectively billed federal programs more than $45 billion since 2007 [4].
On Oct. 15, the same day the sentence was announced, the Justice Department's Fraud Division and HHS-OIG issued a policy stating that companies self-disclosing potential criminal health care conduct need only report to the Fraud Division to receive the benefit of both agencies' self-disclosure programs [5]. Whether that brings more cases to light before they reach the billion-dollar mark remains to be seen.
This article is for informational purposes only and is not medical or legal advice. Readers should consult their clinician about their own care.
References
U.S. Department of Health and Human Services, Office of Inspector General. "Owner of Health Care Software Company Sentenced to 19 Years in Prison for $1B Medicare Fraud" (summary of U.S. Department of Justice press release). HHS-OIG Enforcement Actions. Oct. 15, 2026. https://oig.hhs.gov/fraud/enforcement/owner-of-health-care-software-company-sentenced-to-19-years-in-prison-for-1b-medicare-fraud/. Original DOJ release: https://www.justice.gov/opa/pr/owner-health-care-software-company-sentenced-19-years-prison-1b-medicare-fraud
Anderson P. "Kansas man sentenced to 19 years in prison for $1 billion Medicare fraud." WIBW. Oct. 15, 2026. https://www.wibw.com/2026/10/15/kansas-man-sentenced-19-years-prison-1-billion-medicare-fraud/
KWCH Staff. "Kansas CEO sentenced to 19 years in $1B Medicare fraud scheme." KWCH 12 News. Oct. 15, 2026. https://www.kwch.com/2026/10/15/kansas-ceo-sentenced-19-years-1b-medicare-fraud-scheme/
JC Post. "Kansas man going to prison for $1B Medicare fraud scheme" (republished U.S. Department of Justice release). Oct. 18, 2026. https://jcpost.com/posts/cb45a8ca-85d3-467c-96d7-5f977d886eb5
U.S. Department of Health and Human Services, Office of Inspector General. "National Fraud Enforcement Division and the Department of Health and Human Services Announce Self-Disclosure Protocol for Criminal Health Care Fraud." HHS-OIG Enforcement Actions. Oct. 15, 2026. https://oig.hhs.gov/fraud/enforcement/national-fraud-enforcement-division-and-the-department-of-health-and-human-services-announce-self-disclosure-protocol-for-criminal-health-care-fraud/
