$1 Billion Industrial-Scale Medicare Fraud Scam Shut Down by FBI
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$1 Billion Industrial-Scale Medicare Fraud Scam Shut Down by FBI
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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.