Ind AG: FTC probe resulted in six state lawsuits

Keith Loria Aug. 16, 2010, 11:24am


FORT WAYNE, Ind. (Legal Newsline) - Indiana Attorney General Greg Zoeller announced on Thursday the results of a crackdown on medical discount plan marketers reached in conjunction with officials from the Federal Trade Commission.

Zoeller and 23 state attorneys general participated in an FTC-led nationwide sweep, which resulted in over 50 actions against similar discount plan companies.

Indiana has filed six lawsuits since 2009 directed at companies and individuals selling medical discount plans to state residents. The lawsuits allege that by sending unwanted faxes and making robocalls, the companies were in violation of Indiana's Telephone Privacy laws.

"These six cases brought in Indiana are examples of our efforts to be proactive and not wait for victims to file complaints," Zoeller said. "By aggressively using our state's do-not-fax and robo-calling statutes our telephone privacy section is helping us focus on consumer protection rather than consumer restitution."

During the two-year period from which the cases arose, Zoeller's office received more than 1,500 complaints about faxes and pre-recorded messages offering medical discount plans.

Indiana's six cases include a suit against the Calif.-based The Association for Lifestyle Reform and Claims & Benefit Management Inc., which was settled on June 25. The company has already paid $65,000 in civil penalties.

The Texas-based Association Healthcare Management, doing business as Family Care, settled a case on May 20, and the company has paid $30,000 in civil penalties

On June 21, a suit against ProStarr Satellite, Brett Scott, Phillip Jones, Nicholas Wall, also known as Nickolas Wall and Nick Wall, based in California and Wyoming, was settled, with $12,000 of $40,000 in civil penalties paid so far.

Suits against Direct Health Partners, also known as Health Solutions, and Harold Roy Judson Lief, based in Nevada and Texas, are pending. Additional cases against Smart Data Solutions LLC, American Trade Association LLC, American Trade Association Inc., Serve America Assurance Ltd., and Gary Lord, also known as Gary Davis, are also pending.

The enforcement actions allege deceptive practices or representations as insurance law violations.

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