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Kansas CEO Sentenced to 19 Years for $1 Billion Medicare Fraud Scheme

Cryptelio Editorial Published 19 Oct 2026 · 12:16 UTC
Kansas CEO Sentenced to 19 Years for $1 Billion Medicare Fraud Scheme

Federal prosecutors have sentenced Brett Blackman, 43, from Johnson County, Kansas, to 19 years in prison for masterminding a fraudulent Medicare scheme. Blackman operated an online platform that produced false medical orders, leading to significant financial losses for Medicare.

Blackman was convicted after a 23-day trial on multiple charges, including wire fraud and conspiracy to defraud the United States. His company, HealthSplash, acquired the DMERx platform in 2017, which facilitated the issuance of unnecessary medical orders for braces without proper patient evaluations.

The fraudulent activities resulted in over $1 billion in claims submitted to Medicare and other insurers, with more than $450 million disbursed. The scheme involved over 346,000 beneficiaries, with some receiving an excessive number of orthotic braces.

Assistant Attorney General Colin M. McDonald emphasized the significance of the case, stating that it dismantled one of the largest telemedicine fraud schemes in history, holding Blackman accountable for his actions.

FAQ

What was Brett Blackman sentenced for?

Brett Blackman was sentenced to 19 years in prison for masterminding a fraudulent Medicare scheme that involved producing false medical orders and resulted in over $1 billion in claims submitted to Medicare.

What was the name of the company operated by Brett Blackman?

Brett Blackman operated a company called HealthSplash, which acquired the DMERx platform used to facilitate the issuance of unnecessary medical orders for braces.

How many beneficiaries were involved in the fraudulent scheme?

The fraudulent activities involved over 346,000 beneficiaries, some of whom received an excessive number of orthotic braces.

What charges was Brett Blackman convicted of?

Brett Blackman was convicted on multiple charges, including wire fraud and conspiracy to defraud the United States.

What was the financial impact of the fraud scheme?

The fraudulent scheme resulted in over $1 billion in claims submitted to Medicare and other insurers, with more than $450 million disbursed.

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