Telemarketers who sold fraudulent health insurance are banned from selling...
Telemarketers who sold fraudulent health insurance are banned from selling healthcare-related products, under a settlement with the FTC, the agency announced Wednesday (http://1.usa.gov/XwnlYf). According to a release, the settlement is related to a September 2012 case against Roy and Judy…
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Hamilton and their companies -- Health Service Providers, Inc., Magnolia Health Management Corp., Magnolia Technologies Corp. and Fav Marketing Inc. -- for “fraudulently selling bogus health insurance for the Independent Association of Businesses (IAB).” The FTC claimed that the defendants contacted individuals who had shared their contact information with websites offering information about health insurance and sold those individuals fraudulent insurance for an initial fee of $50 and monthly fees between $40 and $1,000, the release said: Consumers later realized they were “deceived into buying an IAB membership that supposedly provided discounts on services such as golf, travel, and some limited health related services and insured benefits.” The settlement -- which was approved with a vote of 4-0-1 with Chairman Jon Leibowitz not participating -- prohibits the defendants from selling any healthcare-related products, misrepresenting goods and services, financially benefitting from consumers’ information and violating the agency’s Telemarketing Sales Rule, according to the release, and imposes an $11.8 million judgment that has been suspended due to asset surrender.