TOPEKA, October 19, 2026 — A Kansas businessman has been sentenced to 19 years in federal prison for his role in orchestrating a massive telemedicine fraud scheme. Brett Blackman, 43, operated an internet platform that generated over $1 billion in fraudulent medical claims, targeting hundreds of thousands of Medicare beneficiaries across the United States.
The Mechanics of the DMERx Platform
The operation centered on a platform known as DMERx. According to the Department of Justice, Blackman owned and operated a company called HealthSplash, which acquired the DMERx platform in September 2017.
Prosecutors stated that these doctors often had little to no interaction with the patients whose names appeared on the prescriptions. By creating these false records, the conspirators were able to bill Medicare and other federal health programs for medically unnecessary orthotic braces and other equipment.
Exposing the Fraud
The scale of the operation was vast, involving 346,000 beneficiaries. Evidence presented at trial showed that the conspirators took deliberate steps to avoid detection by federal auditors. They utilized sham contracts and systematically removed references to telemedicine from medical orders to create the appearance of legitimate, in-person clinical encounters.
Investigators utilized undercover operations to penetrate the network. In one documented instance, an undercover agent posing as a Medicare beneficiary was contacted by an international call center. The agent was pressured to accept multiple orthotic braces. A doctor subsequently signed orders for the equipment, falsely claiming that in-person tests had been performed, despite never having spoken to the agent. This interaction provided a clear look into the aggressive telemarketing tactics used to siphon taxpayer funds.
The Broader Stakes and Legal Consequences
The financial impact of the scheme was significant. According to the Department of Justice, suppliers and pharmacies paid illegal kickbacks to obtain these fraudulent orders. While the total amount billed to Medicare and other insurers exceeded $1 billion, the programs ultimately paid out more than $450 million in taxpayer funds.
The investigation was a collaborative effort involving the Department of Justice, the FBI, the Department of Health and Human Services Office of Inspector General, the Department of Veterans Affairs Office of Inspector General, and the Defense Criminal Investigative Service. These agencies emphasized that the fraud undermined the integrity of the health care system and diverted resources intended for vulnerable Americans and military veterans.
Following a 23-day jury trial that concluded 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. His sentence follows that of his co-defendant, Gary Cox, who received a 15-year prison term in December 2025. The court is expected to determine the final amount of restitution and forfeiture at a later date. This outcome signals a firm stance by federal authorities against those who attempt to exploit the nation’s health care infrastructure for personal enrichment.
Undercover Tactics Revealed
Investigators used undercover agents to expose the inner workings of the DMERx scheme. In one documented case, an undercover agent posing as a Medicare beneficiary was contacted by an international call center and pressured to accept multiple orthotic braces. A doctor subsequently signed orders for the equipment, falsely claiming that in-person tests had been performed, despite never having spoken to the agent. This interaction provided direct evidence of the fraudulent telemarketing tactics used to obtain false prescriptions.
Sources
- Kansas man going to prison for $1B Medicare fraud scheme
- Kansas man going to prison for $1B Medicare fraud scheme
- Kansas CEO sentenced to 19 years in $1B Medicare fraud scheme
Photo: 25or6to4 (CC BY-SA 4.0)
