KANSAS CITY, Mo. — Two executives of an Overland Park-based company have been charged with conspiring to commit $1.9 billion in health care fraud, marking what officials called one of the largest such schemes prosecuted in Justice Department history.
Johnson County residents Brett Blackman, 39, and Gregory Schreck, 49, were indicted in the Southern District of Florida for allegedly conspiring to commit fraud, conspiring to pay and receive health care kickbacks, and conspiring to defraud the U.S.
The men were charged along with Gary Cox, 77, of Arizona, in connection with more than $1.96 billion in fake claims submitted to federally funded programs, according to prosecutors.
The indictments were announced as part of a national crackdown that led to charges against 78 people accused of attempting to commit $2.5 billion in health care fraud schemes.
“The Justice Department will find and bring to justice criminals who seek to defraud Americans and steal from taxpayer-funded programs,” U.S. Attorney General Merrick Garland said in a statement.
The indictment alleges Blackman, Schreck and Cox ran a software platform called DMERx, which authorities contend created false “doctors’ orders in exchange for illegal kickbacks and bribes.” The claims submitted were for “orthotic braces, prescription skin creams and other items” that were not eligible for Medicare reimbursement, prosecutors said.
Hundreds of thousands of beneficiaries were allegedly targeted as part of the scheme, which prosecutors say occurred from 2015 to 2020. About $639 million was actually paid out on false claims, according to authorities.
Prosecutors allege the crimes occurred in Florida’s Miami-Dade and Palm Beach counties.
Blackman was the CEO of Overland Park-based HealthSplash Inc., while Schreck was its vice president, according to the indictment. Prosecutors listed Cox as a director there.
The company — whose listed address is 7007 College Blvd. — ran DMERx after a corporate acquisition, prosecutors said. The company’s listed phone number was not in service Wednesday.
The most serious count the men face carries a prison sentence of 20 years.
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