Court Sentences HealthSplash CEO to 19 Years in Prison
Brett Blackman receives a 19-year sentence for orchestrating a massive $1 billion healthcare fraud scheme.
Updated on Oct. 20, 2026 in Financial Crime
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A federal court has sentenced software executive Brett Blackman to 19 years in prison for his role in a $1 billion health care fraud conspiracy. The scheme utilized the HealthSplash platform to generate fraudulent doctor orders for medical equipment, resulting in $450 million in illegal payments.
Why it matters
The operation abused the healthcare system by connecting pharmacies with telemedicine companies to process illegal medical orders. By leveraging sham contracts and falsified documentation, the scheme successfully bypassed federal audit systems to target Medicare beneficiaries.
Brett Blackman was sentenced to 19 years in federal prison following a conviction for healthcare fraud and conspiracy charges. Co-defendant Gary Cox previously received a 15-year prison sentence in December 2025.
The players
Brett Blackman
He is a software executive who owned and operated the HealthSplash platform.
Gary Cox
He is a co-defendant in the healthcare fraud scheme who was previously sentenced to prison.
The details
Blackman owned the HealthSplash platform, which acquired DMERx in 2017 to facilitate the billing of Medicare and private insurers. The network involved more than 346,000 beneficiaries and included cases where over 1,200 individuals were prescribed at least 21 orthotic devices each.
Timeline
September 2017: HealthSplash acquired the DMERx platform.
December 2025: Co-defendant Gary Cox was sentenced to 15 years.
October 15, 2026: Brett Blackman was sentenced to 19 years in prison.
Legal Context
This sentencing follows a pattern of high-level prosecutions under the False Claims Act enforcement actions designed to combat healthcare billing abuse. These cases reflect a broader federal crackdown on complex fraud networks that exploit telemedicine and digital health infrastructure.
This case highlights vulnerabilities in the Medicare billing system that can lead to higher insurance costs and administrative overhead for the public. Ongoing efforts to tighten audits and oversight of telemedicine providers are intended to reduce such fraudulent drain on taxpayer-funded programs.
The takeaway
The dismantling of the HealthSplash network illustrates the significant scale of digital fraud targeting federal medical programs. Individuals should monitor their Explanation of Benefits statements regularly to ensure that medical equipment charges align with actual care received.
Further reading
For more information on ongoing prosecutions, visit Financial Crime.
Live Poll
Do you trust federal oversight to effectively prevent large-scale medical billing fraud in the United States?
