The Justice Department’s most recent public announcements, covering October 12 through October 16, 2026, span health care fraud, export controls, election-related prosecutions, labor-market enforcement and consumer protection. According to the department’s press releases, a federal judge sentenced the owner of a health care software company to 19 years in prison for a scheme that billed Medicare and other federal programs more than $1 billion. Below are seven actions that stand out, with the allegations kept separate from what courts have actually found.
1. HealthSplash CEO Sentenced to 19 Years in $1 Billion Medicare Fraud
Brett Blackman, 43, of Johnson County, Kansas, was sentenced on October 14 to 19 years in prison, according to a DOJ press release dated October 15. Blackman was CEO and owner of HealthSplash, which acquired Power Mobility Doctor Rx, LLC, known as DMERx, in September 2017. The release says a jury convicted him in April 2026, after a 23-day trial, of conspiracy to commit health care fraud and wire fraud, conspiracy to pay and receive kickbacks, and conspiracy to defraud the United States and make false statements relating to health care.
Prosecutors described DMERx as an internet platform that generated doctors’ orders for durable medical equipment, chiefly orthotic braces, for hundreds of thousands of Medicare beneficiaries. Per the release, pharmacies, equipment suppliers and marketers were connected with telemedicine companies that accepted kickbacks in exchange for signed orders, and physicians were paid to sign with little or no patient contact. The department says Medicare was billed for braces for more than 346,000 beneficiaries, including over 1,200 who were billed for at least 21 orthotics each. Total billings exceeded $1 billion, and Medicare and other insurers paid more than $450 million, the release states.
The release also describes an undercover operation in which an agent posing as a beneficiary was pushed braces by a foreign call center, and a doctor signed an order citing in-person tests that never took place. Co-defendant Gary Cox was sentenced to 15 years in December 2025. Restitution and forfeiture have not been set, and the release does not name the sentencing court. The case was investigated by HHS-OIG, the FBI, VA-OIG and the Defense Criminal Investigative Service and prosecuted by the Fraud Division’s Health Care Fraud Section. Significance: telemedicine-driven durable medical equipment fraud remains a top priority, and the length of this sentence signals how the department views trial-convicted organizers of large schemes.
2. DOJ and HHS-OIG Create a Single Path for Health Care Self-Disclosure
On October 15, the department’s National Fraud Enforcement Division and the HHS Office of Inspector General announced a coordinated self-disclosure protocol for criminal health care fraud. Under it, a company that reports possible criminal misconduct to the Fraud Division can receive the benefits of both DOJ’s Corporate Enforcement Policy and HHS-OIG’s Self-Disclosure Protocol without a separate submission. HHS-OIG also updated its protocol to say criminal conduct should go to DOJ, and disclosing only to HHS-OIG generally will not count as a voluntary self-disclosure to DOJ or usually qualify a company for a declination, according to the release.
Assistant Attorney General Colin M. McDonald said, “There is now one clear point of contact: DOJ’s Fraud Division.” The release says the Health Care Fraud Section has nine strike forces and has charged more than 6,200 defendants who billed federal programs and private insurers over $45 billion since 2007. It also notes that the Fraud Division was created April 7 and supports the Task Force to Eliminate Fraud, chaired by Vice President J.D. Vance. Significance: compliance officers at hospitals, labs, pharmacies and device makers now have a clearer, but higher-stakes, decision point: a disclosure routed to the wrong office may forfeit leniency.
3. California Man Charged With Smuggling Export-Controlled AI Servers to China
A federal grand jury in the Central District of California returned a three-count indictment on September 29 against Greg Lui, 38, of San Gabriel, with the case announced October 1 in a DOJ release. Lui owns Earthmade Computer Inc. of City of Industry. He is charged with conspiracy to violate the Export Control Reform Act and Export Administration Regulations, outbound smuggling, and conspiracy to commit money laundering, with statutory maximums of 20, 10 and 20 years respectively.
Prosecutors allege that between 2023 and 2024 Lui and co-conspirators bought high-end servers containing U.S.-made GPUs without required Commerce Department licenses, shipped them to Malaysia and Singapore, and reshipped them to China, while giving U.S. manufacturers false documents about end users. The indictment alleges Earthmade received more than $176 million from two Malaysia-based shipping companies between January and October 2024. In one example, Lui allegedly ordered 27 servers in January 2024 for about $7.6 million. The release stresses that an indictment is only an allegation and that the defendant is presumed innocent. Significance: the case illustrates how enforcement has moved beyond direct shipments to transshipment hubs in Southeast Asia, and it involves the FBI, the Defense Criminal Investigative Service and Commerce’s Bureau of Industry and Security.
4. Sixteen People Charged in Election-Related Cases Across 11 Districts
The department announced charges involving 16 individuals in election-related offenses, published around October 12 and tied to press release 26-1167. The allegations include voting by non-citizens in federal elections, false claims of citizenship to register or vote, voting on behalf of a deceased person, and voting more than once in the same election. Cases were filed in districts including New Mexico, Eastern Pennsylvania, Southern and Northern Alabama, Western Missouri, Idaho, New Jersey, Southern and Northern Ohio, Hawaii and Western Kentucky.
The charging vehicles vary: one indictment, several informations and several criminal complaints. Examples in the release include a New Mexico man accused of trying to cast his late wife’s absentee ballot in November 2024, and a Western Missouri man, a lawful permanent resident, alleged to have claimed citizenship when registering and to have voted in at least 15 elections. One Ohio defendant reportedly told investigators that a person helping with registration said she could vote. The department notes that a complaint, indictment or information contains only accusations. Significance: the volume is small relative to total ballots cast, but the geographic spread shows the department is coordinating cases nationally. Outcomes, including any intent findings, will matter more than the filings.
The department’s press page also lists an October 16 release titled “Charges Involving 16 Aliens for Illegal Voting.” TIJ has not yet reviewed that release in full and does not characterize it here.
5. Cloudera Settles Allegations It Disfavored U.S. Workers in PERM Recruiting
On October 16, the Justice Department’s Civil Rights Division and the Department of Labor announced a settlement with Cloudera Inc. of Santa Clara. The government alleged, in an April 2026 lawsuit, that the data management company violated the Immigration and Nationality Act by excluding U.S. workers from recruiting and hiring for seven positions under the Permanent Labor Certification (PERM) program. Under the settlement, Cloudera is barred from PERM for two years, will fund $1.4 million in back pay for qualified U.S. workers who applied, and will pay $600,000 in civil penalties, plus enhanced compliance and reporting.
The department says this is the fourteenth settlement under its Protecting U.S. Workers Initiative, relaunched in 2025. Assistant Attorney General Harmeet K. Dhillon said, “There are no exceptions: the Justice Department will hold accountable employers who discriminate against U.S. workers.” Significance: employers that sponsor green cards should expect scrutiny of how job advertisements and applicant screening are documented. Cloudera’s response to the allegations is not described in the release; TIJ will note any statement the company provides.
6. Ticket Broker REPS & Company Sued Over Alleged BOTS Act Violations
The department and the Federal Trade Commission filed a civil complaint on October 15 in the Southern District of California against REPS & Company Inc. and three executives: Ryan Pancheri, Brian Archibald and Nicholas Totagrande. The complaint alleges violations of the FTC Act and the Better Online Ticket Sales (BOTS) Act, which prohibits circumventing the controls ticket sellers use to enforce purchase limits.
The government alleges that since 2022 the defendants evaded those limits for thousands of events, spending more than $1.3 billion to acquire over 18.5 million tickets and earning at least $120.8 million in profit on resale. The release states that these are allegations only and that no determination of liability has been made. Assistant Attorney General Brett A. Shumate said the department will keep enforcing the BOTS Act with the FTC. Significance: the figures, if proven, would make this among the larger secondary-ticket cases brought under the statute, and the naming of individual executives raises personal exposure for the industry.
7. Money Laundering Manager Sentenced to 12 Years; $4 Million Medicare Eyedrop Settlement
Also on October 16, Ygor Fokin Saviolli, 35, a Brazilian national, was sentenced to 12 years as a manager in a conspiracy that laundered more than $30 million, including drug proceeds. The release says couriers collected bulk cash in cities including Atlanta, Charlotte, Chicago and Tampa, deposited it in banks, and sent funds abroad, coordinating through WhatsApp. He is the sixth defendant sentenced, following co-defendants who received between 12 months and 94 months on September 24. The FBI led the investigation with the DEA and HSI.
In a smaller civil matter, Somerset Lifesciences Inc. agreed to pay $4 million to resolve common-law claims that it caused Medicare Part D to pay for generic olopatadine eyedrops after the brand drug, Pataday, moved to over-the-counter status in 2020. The government alleges Somerset kept labeling its generic as prescription-only. Apart from the settlement’s terms, there has been no determination of liability. Significance: the Somerset resolution shows labeling lapses can create federal program exposure even without a False Claims Act count.
Cases Worth a Deeper TIJ Look
Several threads warrant further reporting. First, the HealthSplash case leaves open the question of restitution, which may reveal how much of the $450 million paid has been recoverable, and how many telemedicine physicians and suppliers remain under investigation. Second, the Earthmade indictment raises questions about the Malaysian and Singapore shipping intermediaries named in the allegations and how export license gaps were exploited. Third, the election-related filings deserve a document-level review of the underlying complaints and informations, including how intent is alleged. Fourth, the new self-disclosure protocol may produce the first corporate declinations, which TIJ will track through public filings.
Right of reply: TIJ has not received responses from the named defendants or companies. All individuals and entities charged but not convicted are presumed innocent, and the descriptions above reflect allegations in public Justice Department releases. TIJ welcomes statements from any party named and will update this digest accordingly.
Sources: U.S. Department of Justice press releases, October 1 and October 12-16, 2026, linked above.