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