Brett Blackman, a 43-year-old Kansas businessman, was sentenced to 19 years in federal prison for orchestrating a $1 billion telemedicine fraud scheme that targeted Medicare beneficiaries.
Operating an International Telemarketing Network for Unnecessary Durable Medical Equipment
Operating out of Johnson County, Kansas, Blackman owned and controlled HealthSplash, a platform that acquired Power Mobility Doctor Rx, LLC, known as DMERx, in September 2017. DMERx functioned as an internet-based infrastructure designed to generate false doctors’ orders and prescriptions for durable medical equipment, primarily orthotic braces. According to evidence presented at trial, Blackman and his co-conspirators connected foreign call centers, pharmacies, and orthotic suppliers with telemedicine companies willing to accept illegal kickbacks and bribes.
A Kansas CEO was just sentenced to 19 years in a $1B Medicare telemedicine fraud. It's great that this administration is finding the fraud and actually holding people accountable.Brett Blackman, a Kansas CEO and an owner of an internet platform, was sentenced to 19 years in… pic.twitter.com/5quo3qW1R6
The operation targeted hundreds of thousands of Medicare beneficiaries across the United States, pushing them to accept medically unnecessary orthotic braces. Once patients agreed through aggressive telemarketing, purported telemedicine doctors signed bogus prescription orders using Blackman’s DMERx platform without conducting any meaningful clinical examination, or in some cases, without speaking to the patient at all.
In Plain English: The Clinical Takeaway
- Unnecessary Medical Devices: The scheme pushed high volumes of durable medical equipment—specifically orthotic braces—to patients who had no clinical indication or medical necessity for them.
- Compromised Medical Decision-Making: Telemedicine providers accepted kickbacks to sign official orders, bypassing legitimate patient evaluations, physical exams, and standard physician oversight.
- Systemic Financial Exploitation: Fraudulent billing targeted Medicare and other federal health care benefit programs, siphoning resources away from legitimate patient care.
Concealing the Scheme and Bypassing Medicare Audits
To keep the revenue flowing, Blackman and his co-conspirators implemented sophisticated concealment tactics. They utilized sham contracts and actively manipulated clinical documentation to avoid detection by Medicare auditors. This included intentionally scrubbing references to telemedicine from the doctors’ orders to make the fraudulent prescriptions appear as though traditional, in-person examinations had occurred.
Undercover law enforcement operations exposed the mechanism behind the operation. An agent posing as a Medicare beneficiary was relentlessly pushed by a foreign call center to accept multiple braces. Subsequently, a participating doctor signed bogus orders claiming that various physical tests—which can only be performed during an in-person physical examination—had been conducted, despite never speaking to the undercover agent.
All told, Blackman’s network billed Medicare and other federal health care benefit programs more than $1 billion for unnecessary equipment, resulting in actual payouts exceeding $450 million. In total, Medicare was fraudulently billed for orthotic braces for more than 346,000 beneficiaries, averaging four braces per patient, with over 1,200 individuals billed for at least 21 orthotics each.
Jury Conviction and Co-Defendant Sentences
Following a 23-day jury trial ending in April 2026, Blackman was convicted 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 in connection with health care matters. The U.S. Department of Justice highlighted the operation as one of the largest telemedicine fraud schemes ever.
The sentencing reflects a coordinated multi-agency investigation involving the Department of Health and Human Services Office of Inspector General (HHS-OIG), the FBI, the Department of Veterans Affairs Office of Inspector General (VA-OIG), and the Defense Criminal Investigative Service (DCIS). Blackman’s co-defendant, Gary Cox, received a 15-year prison sentence in December 2025.
| Metric | Details of the DMERx Fraud Scheme |
|---|---|
| Total Billed Amount | Over $1 billion to Medicare and federal health programs |
| Actual Payouts | More than $450 million paid out by insurers |
| Affected Beneficiaries | More than 346,000 Medicare patients |
| Average Braces Billed | Four orthotic braces per beneficiary |
Contraindications & When to Consult a Doctor
Patients who receive unsolicited durable medical equipment or prescriptions via telemarketing calls should immediately verify their medical necessity with their primary care physician. Legitimate medical equipment requires a verified face-to-face clinical evaluation, proper diagnostic justification, and documented physical indications. Any individual who suspects unauthorized billing or receives medical supplies they did not request should report the incident directly to the HHS-OIG or Medicare.
Restitution and forfeiture obligations for Blackman will be determined by the court at a subsequent date.
References
- U.S. Department of Justice.
- KWCH.
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