FTC says Florida operation made $100M from fake insurance
A Florida-based operation made millions of dollars by claiming to sell comprehensive health insurance plans that were actually bare-bones discount programs with almost no coverage, according a complaint from the Federal Trade Commission.
By the numbers: The FTC says the alleged scam pulled in more than $100 million and “left tens of thousands of people uninsured.”
Details: The FTC is going after Simple Health Plans LLC, its owner, and a network of five other companies.
- That operation opened websites with names like TrumpCareQuotes.com, purporting to sell comprehensive insurance that covered pre-existing conditions and prescription drugs, according to the FTC. It charged premiums as high as $500 per month.
- But, according to the FTC’s complaint, customers were actually getting a simple discount program that didn’t cover drugs or pre-existing conditions and would only pay out a maximum of $3,200 in benefits per year.
A federal judge has temporarily halted all operations of Simple Health Plans and its related companies. The court also ordered the seizure of more than $100,000 in jewelry and three luxury cars — a Lamborghini, a Range Rover and a Rolls-Royce — it says were purchased with the companies’ money.