FOLLOW US

America October 16, 2026 3 mins read

HealthSplash VP 18 Months Sentencing Rewards Cooperation in $450M Medicare Fraud

America ı By Tyler Brooks

0 Comments

HealthSplash VP 18 Months sentencing

Cooperation can shave years off a prison term, but it rarely erases the crime. A former healthcare executive who helped the government received an 18-month sentence Friday for his part in a $450 million scheme to swindle Medicare using software that generated false prescriptions for orthotic braces.

The Sentence

At a hearing in Miami, U.S. District Judge David S. Leibowitz sentenced Gregory Schreck, a former vice president of HealthSplash Inc., to 18 months in prison. The government says HealthSplash defrauded Medicare through “DMERx,” a software program that created fake prescriptions for orthotic braces.

A Judge Who Went Lower Than Prosecutors Asked

Prosecutor Darren Halverson cited Schreck’s extensive cooperation and asked for a 40% reduction off the 10-year statutory maximum for the one count to which Schreck pleaded guilty: conspiracy to commit healthcare fraud. Leibowitz went further, saying that recommendation would not send a strong enough signal to other co-defendants to cooperate with prosecutors.

“The signal is that going forward, because of sentences like this, the future Gregory Schrecks of the world will run to Mr. Halverson and beg him to cooperate,” the judge said.

Central to the Scheme, Crucial to the Conviction

Leibowitz called Schreck “absolutely central in enabling the cheating,” but noted his trial testimony was crucial in convicting HealthSplash CEO Brett Blackman, who was sentenced Wednesday to 19 years in prison.

The judge ordered Schreck to surrender to the U.S. Marshals by Oct. 31 and agreed to recommend that he serve his sentence at the federal facility in Leavenworth, Kansas, near his home.

How the Case Unfolded

Schreck pleaded guilty in February 2025, admitting he conspired with Gary Cox, who developed DMERx, Blackman and others to operate HealthSplash and National Center for Pain LLC between 2017 and 2020, according to the factual proffer filed with his plea deal.

He testified earlier this year against Blackman, whom a Miami jury found guilty in May of conspiracy to commit healthcare fraud and wire fraud, conspiracy to pay and receive kickbacks, and conspiracy to defraud the United States.

A “Medicare Fraud Factory”

At Blackman’s trial, Halverson called HealthSplash a “one-stop Medicare fraud factory by scammers and for scammers,” created to connect foreign call centers with corrupt telemedicine doctors and durable medical equipment companies. Prosecutors said telemedicine doctors who never treated the patients were bribed and paid kickbacks to sign the prescriptions.

Co-Defendants and Operation Brace Yourself

Blackman began trial last year alongside Cox but was severed as a defendant and a mistrial was declared in his case. Cox, CEO of Power Mobility Doctor Rx LLC, was convicted and sentenced in December to 15 years in prison.

The men were indicted in June 2023, along with Schreck, as part of Operation Brace Yourself, a nationwide federal investigation into companies that billed Medicare for medically unnecessary orthotic braces. The operation led to charges against 78 people.

The HealthSplash Network

Prosecutors said the companies belonged to the HealthSplash Network, which used an internet platform to connect brace suppliers, telemarketers, telemedicine companies and pharmacies willing to accept kickbacks in exchange for arranging medical professionals to prescribe pain creams, braces and other items for recruited beneficiaries.

The Lawyers

The government is represented by Darren C. Halverson, Reginald Cuyler Jr. and Lorinda Laryea of the U.S. Department of Justice’s Criminal Division, Fraud Section. Schreck is represented by Kenneth M. Swartz and Steven Harold Haguel.

For Schreck, 18 months is far below the statutory ceiling. For the judge, it was also a message to every defendant still weighing whether to talk.

Previous Article

Malibu Fire Forces Hundreds to Flee as Santa Ana Winds Threaten 100 Structures

Read More
1092 Posts

Tyler Brooks

Tyler is covering the intersection of law, finance, and public policy. With a keen eye for regulatory shifts and market trends, he brings clarity to complex issues shaping the global economy, and drama whenever possible.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America November 05, 2026 AI Flagged Bias in Trump Climate Panel’s Report By – Michallie K Harrison
America November 05, 2026 Russell Brand Convicted of Rape, Taken Into Custody By – Michallie K Harrison
America November 5, 2026
Sister Wives Shake-Up: Janelle Brown Reveals…

By Jackie Allen | USA Herald Janelle Brown’s latest revelation…

By – Jackie Allen
America November 4, 2026
Mars: Newly Discovered Volcanic Activity Raises…

New findings from a European Space Agency spacecraft suggest that…

By – Jackie Allen
America November 4, 2026
WNBA: DeWanna Bonner Makes Emotional Admission…

ATLANTA — The WNBA Finals ended in heartbreak for the…

By – Jackie Allen
America November 4, 2026
3M $7.35 Billion PFAS Settlement Targets…

3M Co. is committing $7.35 billion over nine years to…

By – Rachel Moore
America November 4, 2026
PAI Buys Elemis, Betting on U.S.…

Private equity firm PAI Partners said Wednesday it will acquire…

By – Rachel Moore
America November 4, 2026
Dronamics’ $500M SPAC Deal Sets Autonomous…

Autonomous aviation company Dronamics unveiled plans Wednesday to enter the…

By – Rachel Moore
America November 4, 2026
The Midterms Gave This Veteran Faith…

OPINION | I need to be real with y’all again. More…

By – Michallie K Harrison
America November 4, 2026
Amy Totenberg $16M Deal: Judge Approves…

A decade-long dispute over retirement benefits at NCR Corp. has…

By – Tyler Brooks
America November 4, 2026
CVS To Split In 2, Unwinding…

CVS Health announced Wednesday that it plans to divide into…

By – Tyler Brooks
America November 4, 2026
Inés Gómez Mont Arrested by ICE…

MIAMI —  Inés Gómez Mont, a former television personality who…

By – Jackie Allen
America November 4, 2026
El-Sayed Wins Michigan Senate Race in…

Progressive favorite Abdul El-Sayed has defeated Republican Mike Rogers in…

By – Tyler Brooks
America November 4, 2026
Democrats’ Senate Takeover Sends Shockwaves Through…

President Donald Trump urged voters to imagine he was on…

By – Tyler Brooks
America November 4, 2026
Mississippi Senate Race on a Knife’s…

The mississippi senate race remained locked in a razor-thin contest…

By – Tyler Brooks
America November 4, 2026
Hakeem Jeffries and the Power of…

WASHINGTON — Hakeem Jeffries is poised to become the first…

By – Michallie K Harrison
America November 4, 2026
Freedom for Whom? El-Sayed, Hinojosa and…

El-Sayed and Hinojosa have given America two victories that belong…

By – Michallie K Harrison
America November 4, 2026
America’s 60-Day Danger Zone After the…

WASHINGTON — Americans voted to change the balance of power…

By – Michallie K Harrison
America November 4, 2026
Nuremberg Trials Part 2: The 2026…

WASHINGTON — The 2026 midterms have delivered a political earthquake.…

By – Michallie K Harrison
America November 4, 2026
Keisha Lance Bottoms Just Broke a…

For 250 years, the United States has called itself a…

By – Michallie K Harrison
America November 3, 2026
Erika Eleniak Turns OnlyFans Success Into…

LOS ANGELES — Erika Eleniak is proving that life after…

By – Jackie Allen
America November 3, 2026
Soft War? Trump Orders Limited U.S.…

WASHINGTON — November 3, 2026 — President Donald Trump described…

By – Jackie Allen
America November 3, 2026
California Supreme Court Could Reshape Police…

SAN JOSE, Calif. – A federal appeals court has ruled…

By – Samuel Lopez
America November 3, 2026
Trump Weighs Iran Strikes as Carlson…

WASHINGTON — U.S. officials have warned regional allies to prepare…

By – Michallie K Harrison
America November 3, 2026
China May Be Making Weapons-Grade Uranium…

China has likely resumed producing weapons-grade uranium after a pause…

By – Michallie K Harrison
America November 2, 2026
California Bar Exam Pass Rate Falls…

What the Numbers Reveal California’s July 2026 bar exam pass…

By – Samuel Lopez
America November 2, 2026
California Botox Doctor Gets 15 Years…

What the Medicare Records Revealed A California doctor billed more…

By – Samuel Lopez
America October 31, 2026
A New 2026 Twin Study Revives…

Three Takeaways Identical twins and triplets were separated through adoption…

By – Samuel Lopez
America October 28, 2026
Michigan Double-Digit Health Insurance Hikes Set…

Michigan residents are facing another costly year for health coverage,…

By – Tyler Brooks
America October 28, 2026
Miyoko Plant Butter Recall Sparks Food…

A plant-based butter product distributed across 10 states is being…

By – Rachel Moore
America October 28, 2026
Pentagon Ketamine Contract: $41M Deal Under…

WASHINGTON — The Pentagon has awarded a Singapore-based pharmaceutical company…

By – Michallie K Harrison
America October 28, 2026
CDC Warns Drug-Resistant Germs Threaten Modern…

WASHINGTON — Drug-resistant germs are causing millions of infections and…

By – Michallie K Harrison
America October 31, 2026
Bill Belichick and Jordon Hudson Reportedly End…

Bill Belichick and Jordon Hudson reportedly ended their romantic relationship…

By – Jackie Allen
America October 29, 2026
Brewers Beat Rays to Win First…

ST. PETERSBURG, Fla. — The Milwaukee Brewers won their first…

By – Michallie K Harrison
America October 23, 2026
Connor Hellebuyck Traded to New Jersey…

The New Jersey Devils have made a major move to…

By – Tyler Brooks
America October 19, 2026
Information Ecosystem: Five Tools to Detect…

The information ecosystem is increasingly vulnerable to misinformation. There are…

By – Jackie Allen
America October 19, 2026
An Airman Died After a Pregame…

By Michallie K. Harrison | Opinion Tech. Sgt. Ian Patterson’s…

By – Michallie K Harrison
America October 16, 2026
NFL Player $300M Hip Surgery Lawsuit…

Athletes bet their bodies on surgeons the way pilots bet…

By – Tyler Brooks

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter