Fraud Report – Haberstroh Insurance Agency, Missouri

Use extrem caution when using Haberstroh Insurance Agency, Senior Health Group, Senior Health Team or B.D.H. The businesses operate out of the same address on Hollenberg Drive in Bridgeton, Mo., and are run by members of the same family.

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Insurance Fraud – First Americans Insurance Service defrauding 250 investors

Three former Grand Island insurance agents are accused of defrauding more than 250 investors out of $29 million over a six-year period, according to a federal indictment announced Wednesday.

Stella Levea, 54, and James Masat, 65, both of Grand Island, and Kenneth Mottin, 54, of St. Libory, were the principals of First Americans Insurance Service, which has been under investigation since a 2009 bankruptcy filing.

The three were indicted on 25 federal charges, including conspiracy, mail fraud and insurance fraud, according to a release from the U.S. Attorney Deborah Gilg. Maximum sentences for those charges range from five to 20 years each.

Levea, Masat and Mottin solicited investments from private lenders who were told their money was backed by secure annuities, according to the indictment filed in U.S. District Court in Lincoln.

MORE >>>> http://www.businessweek.com/ap/financialnews/D9K4KRP00.htm

This year, South Carolina became one of 28 states to shut down one of the biggest fake health insurance frauds ever uncovered. Officials are still counting the victims, but tens of thousands of people lost tens of millions of dollars buying what they thought was legitimate health insurance.

One of the largest scams involved an official sounding group called ATA, the American Trade Association, which was never licensed to sell insurance. Sometimes customers like Wicker would receive policies from real companies whose names were being used without permission.

Meanwhile, David Vladeck at the Federal Trade Commission has cracked down on a different scam, where an estimated 100,000 families lost close to $100 million. The FTC says 3 companies – Health Care One of Arizona, United Benefits of Tennessee and Consumer Health Benefits in Florida – promised their customers major medical insurance. But they only gave them medical discount cards – which were typically worthless.

Investigators say the scam targeted middle-aged Americans who lost their jobs and their company-sponsored health insurance during the recession, couldn’t afford insurance on their own and then went on the Internet looking for something different.

MORE >>>> http://www.cbsnews.com/stories/2010/10/19/eveningnews/main6973393.shtml

The U.S. Department of Veterans Affairs failed to inform 6 million soldiers and their families of an agreement enabling Prudential Financial Inc. to withhold lump sum payments of life insurance benefits for survivors of fallen service members, according to records made public through a Freedom of Information request.

The amendment to Prudential’s contract is the first document to show how VA officials sanctioned a payment practice that has spurred investigations by lawmakers and regulators. Since 1999, Prudential has used so-called retained-asset accounts, which allow the company to withhold lump-sum payments due to survivors and earn investment income on the money for itself.

The Sept. 1, 2009, amendment to Prudential’s contract with the VA ratified another unpublicized deal that had been struck between the insurer and the government 10 years earlier — one that was never put into writing, Bloomberg Markets magazine reports in its November issue. This verbal agreement in 1999 provoked concern among top insurance officials of the agency, the documents released in the FOIA request show.

For a decade, until the contract was formally changed, Prudential wasn’t fulfilling its obligations to survivors of fallen service members, says Brendan Bridgeland, an insurance lawyer who runs the non-profit Center for Insurance Research in Cambridge, Massachusetts.

MORE >>>> http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=ab9l4qZlQzHU

2 South Florida insurance executives of First Commercial Insurance Co. have been charged with 8 first-degree felony counts each after an extensive fraud investigation.

Florida Chief Financial Officer Alex Sink announced the arrests Wed. 8 2010 of Luis M. Espinosa and Rene M. Cambert.

They are charged with filing false, fraudulent or misleading financial statements for First Commercial Insurance Co. and an affiliate with the Florida Office of Insurance Regulation.

Espinosa was president and CEO of the companies. Cambert was vice president and chief operating officer. The two companies were ordered into receivership for liquidation last year.

Each felony count carries a maximum sentence of 30 years in prison.

MORE >>>> http://www.miamiherald.com/2010/09/09/1815254/2-south-fla-insurance-execs-charged.html#ixzz0z3BJQFu7

Advertisements on TV may promise to modify car loans and keep the repo man at bay, but some companies fail to carry through on their promises. To prevent fraud the Better Business Bureau (BBB) recommends that cash-strapped consumers save their money by trying to work out a deal with the lender directly before paying out hundreds in upfront fees to a loan modification company.

High unemployment in the country means that many families are struggling to make ends meet and the number of repossessed cars continues to rise. More than 1.9 million cars were repossessed by lenders in 2009 according to Manheim Auctions. Some businesses are seeing an opportunity in the increased number of repossessed cars and claim that, for a large up-front fee, they can work with the lender to modify the terms of the loan for the borrower.

“Auto loan modification companies are following in the footsteps of unscrupulous fraudulent mortgage modification companies which have long targeted struggling families who are just trying to stay above water,” said Alison Southwick, BBB spokesperson. “Some companies may make it look like they are tossing out a life preserver, but they end up pulling many borrowers deeper underwater.”

MORE >>>> http://www.bbb.org/us/article/beware-of-deceptive-auto-loan-modification-offers-21088?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+US-BBB-Tips+(US+BBB+Tips)

Bart S. Posey, owner of a pair of Robertson County businesses accused of selling bogus health insurance policies to more than 12,400 people nationwide, was lining his own pockets with premiums paid by unsuspecting customers, court documents filed this week by state regulators say.

He bought automobiles and real estate, and even made thousands in donations to the University of Alabama Tide Pride booster club.

It all came to a head late Wednesday as state regulators moved in to seize control of what they say amounted to a massive fraud perpetrated against consumers across the country seeking affordable health insurance from the Springfield-based American Trade Association and Smart Data Solutions.

The state action against the two companies follows the filing of a petition in Davidson County Chancery Court to place them in receivership. A hearing is set for Tuesday.

source: http://www.tennessean.com/article/20100326/BUSINESS01/3260361

What some are calling ” Obamacare ” is promising all sorts of changes to the health care system, but some are cashing in on the hype.

Even with reform still about four years away, people are already falling into the trap.

While we’re in the beginning of the ” figuring it out ” stage a new form of insurance, fraud is popping up across the country.

Now these scammers are posing as representatives of the federal government, trying to sell you an insurance policy, often telling you it’s an offer that’s only available if you sign up now.

” This is a one time offer, you need to make a decision today, you’ll never find it cheaper, but it runs out today, ” is what the scammers are using as a pitch.

Even on the White House website you could write a book with the reform’s frequently asked questions. The reform that was just signed won’t take effect until 2014, meaning anyone that tells you that you need to act now is probably trying to scam you.

” They are just trying to get enough personal information, because that’s what we’re talking about — personal information — to be able to get some money out of you, ” said McBride.

The first thing to check for is a business license, which can be done through the department of insurance. Now might be the time to be a skeptic.

Here are some simple rules to follow when checking for scammers:

The government will not contact you about your insurance and the only correspondence between you and the feds needs to be initiated by you.

Here’s another: always ask for information about their business. If they don’t provide it, it’s probably a scam, and if they do, you can get it check out by the Department of Insurance.

source: http://www.fox12idaho.com/Global/story.asp?S=12224777

The commonwealth’s attorney said a number of people have been scammed by this insurance fraud and it’s suspected there are many more.

It was a couple of years ago when a company called ” Health PMO ” began selling policies, but the prosecutor’s office said when policy holders tried get reimbursed for medical expenses, they ran into a brick wall.

” The reason I got involved with it, my wife was pregnant, ” said Marcus Whiters.
Once his wife delivered their second child at Norton Suburban, Whiters said Health PMO never paid him a cent for medical expenses or delivered promised medications.

” I called several times, never seen anything in the mail, never got any money in the mail. Just giving us the runaround. I figured, ‘Hey, this is a scam, ‘” he said.

He’s also out about $1,000 in premiums.

Up until a year ago, the company was headquartered on Old Outer Loop in Okolona. It’s now an embroidery and screen-printing business.

Another policy holder told WLKY she had gall bladder surgery at Baptist East Hospital, running up a $2,800 bill, only to find out her Health PMO policy was worthless.

5 people have been indicted, each for 70 counts of criminal syndication, insurance fraud and theft
Court records identify them as Stacy Allen Taylor, Sheri Rae Datillo, Marcus L. Lucas, Duane Edwin Jorgensen and William M. Jackson.

Whiters doesn’t hold out any hope of getting his money back.

source: http://www.wlky.com/health/22937487/detail.html

Fraudulent plans continue to grow in size and scope. ” There’s no end in sight, ” said James Quiggle, communications director for the Coalition Against Insurance Fraud.

A common scam involves plans that promise full health care coverage but deliver worthless policies or lesser products designed to look like comprehensive coverage, said Quiggle, who has studied the issue for years. Consumers may purchase ” limited benefit ” plans or medical discount cards that often present themselves as providing full insurance coverage — until the bills come, he said.

Companies that sell these plans tend to operate under many different names, adding or changing new ones frequently, said Oklahoma Insurance Commissioner Kim Holland. The secretary-treasurer of the National Association of Insurance Commissioners has kept tabs on these companies through NAIC entities including an anti-fraud task force and attorneys round table.

Oklahoma is one of many states to take action against American Trade Association of Springfield, Tenn., related entities and their executives. In November 2009, it issued a raft of cease and desist orders that carry civil penalties of $25,000 for each violation. Last month, Florida took similar action against American Trade Association Inc., Beema-Pakistan Co. Ltd., Serve America Assurance Ltd., Real Benefits Association, Affinity Group Benefits Association Inc., Smart Data Solutions LLC., SDS Management Group (BestWire, Feb. 19, 2010). Kansas cited many of the same companies and individuals the same month.

Regulators said the companies were delivering unsolicited blast faxes, e-mails and other communications that advertised inexpensive health insurance coverage. However, they said, the issued policies were for unauthorized limited benefit plans.

Holland said ATA has received at least $14 million in policies from 12,000 members. “It’s just a front for taking people’s money and not paying claims,” she said.

source: http://insurancenewsnet.com/article.aspx?id=174043&type=lifehealth

Red flags
Here are some warning signs that a supposed health care plan won’t be around to actually cover you when you need it:

Low, low premiums. If the plan offers premiums much lower than what other firms are charging — say, less than half the going rate — watch out, says Dave Evans, vice president of the Independent Insurance Agents and Brokers of America in Alexandria, Va. “Ask if their benefits are less generous, or what’s going on,” says Evans.

Easy, easy applications. Your antennae should shoot up if the application for coverage contains only a few questions. “A legitimate individual plan is going to ask sometimes extensive medical questions in order to properly price the product based on a person’s medical condition,” says the NAIC’s Miller.

Union or no union. Be skeptical of an agent trying to sell you a union plan when you’re not in the union.

Unlicensed agents. Watch out if an agent tells you he doesn’t need a license because the insurance is exempt from regulation.