$1 Billion Industrial-Scale Medicare Fraud Scam Shut Down by FBI
Facts Matter
The Epoch Times
4.9 • 1.3K Ratings
🗓️ 23 May 2026
⏱️ 9 minutes
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Summary
The Department of Justice released a statement, announcing the conviction of a man at the center of a billion-dollar Medicaid fraud scheme.
Brett Blackman, the CEO and owner of software company HealthSplash was convicted in federal court for his part in the sprawling fraud scheme. The scheme involved using foreign telemarketers to aggressively call elderly Americans, get their medicaid beneficiary numbers, push medical devices onto them that they did not really need, then generate fraudulent doctors' orders for those devices.
He would then pass on the scripts in return for illegal kickbacks to both suppliers and pharmacies involved in the scam, who would then bill Medicare for these prescriptions.
In total, Blackman, alongside his co-conspirators, billed Medicare over $1 billion and were reimbursed roughly $450 million.
Let’s go through the details together.
Transcript
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| 0:00.0 | Just in time, as I'm sure both myself and everybody watching this video dutifully paid our federal taxes last month, |
| 0:06.0 | the Department of Justice just released a statement announcing the conviction of a man at the center of a giant billion-dollar Medicare fraud scheme. |
| 0:15.4 | Specifically, Mr. Brett Blackman, the CEO and owner of a software company called Health Splash, |
| 0:21.9 | he was just convicted in federal court for his part in this sprawling industrial scale fraud empire. |
| 0:27.8 | The scheme, it involved using foreign telemarketers to aggressively call hundreds of thousands |
| 0:33.5 | of elderly Americans, get their Medicare beneficiary numbers, push medical devices on them |
| 0:39.0 | that they don't really need, things like random things like orthotic braces. Then he would |
| 0:43.8 | generate fraudulent doctor's orders for those devices. And then, with that fake doctor's note |
| 0:49.4 | in hand, he would use his platform to give it to a pharmacy or some kind of a supplier in return for a kickback, |
| 0:55.8 | and that supplier and or pharmacy would in turn bill Medicare for the full amount of the prescription. |
| 1:02.2 | For again, things that the Medicare recipient never even needed. |
| 1:05.7 | In total, Mr. Blackman, alongside his co-conspirators, built Medicare and other insurance companies |
| 1:10.6 | a total of over $1 billion, and they were actually reimbursed roughly $450 million. Let's go through the details together. And, of course, if you appreciate content like this, please do smash those like and subscribe buttons so this video can be picked up by the algorithm and share it out to ever more people. Thank you so much for that. |
| 1:28.1 | Now, to start with, the man, as I mentioned at the top of the episode in question here, is named Mr. Brett Blackman. As you can see by the photo that was provided to the public by the Department of Justice, Mr. Blackman isn't exactly shy about the money he's made, lavishly displaying his wealth, including in a music video featuring a waterfront |
| 1:44.9 | mansion and an ostentatious dollar sign gold chain necklace, which I'll say is all well |
| 1:52.2 | and good. That's the American way to make your money, to show it off without any issue. The only |
| 1:57.9 | problem with his wealth is that it appear to have come from a giant industrial grade scam. According to the court documents, as well as the evidence presented at the actual trial, Mr. Blackman was the CEO and the owner of a company called Health Splash. It's a healthcare software company. And in September of 2017, Health Splash acquired another company, |
| 2:19.5 | this one called Power Mobility Doctor RX. It's also known within the core documents by the |
| 2:24.9 | acronym DME RX, which stands for durable medical equipment RX prescription. And this company |
| 2:31.3 | had a very interesting business model. It was basically an internet platform that people could use to get a real doctor's prescription |
| 2:37.8 | for medical devices that they might need, things like orthotic braces. |
| 2:42.1 | However, that convenience of being able to do it online was then taken advantage of by Mr. Blackman |
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