WASHINGTON (Legal Newsline) — The Federal Trade Commission (FTC) has announced Gary L. Kieper and Partners in Health Care Association Inc. (PIHC) have been banned from selling health care-related products and from telemarketing.
The defendants allegedly scammed Spanish-speaking and other consumers seeking health insurance, particularly those who had been paying high premiums for coverage due to job loss, by offering phony medical discount cards. These cards were purported to provide discounts for doctor and emergency room visits. In actuality, the FTC charged, the card left consumers uninsured – even though consumers had paid a fixed enrollment fee and expensive monthly “premiums.”
The U.S. District Court for the Southern District of Florida delivered a judgment against Kieper, stating he controlled the operation, knew of the false representations and assisted in the telemarketer violations.
In addition to banning Kieper and his business from selling health care-related products, the court also mandated they pay $8,746,094. The court entered its summary judgment order against Kieper on May 31 and its judgment against PIHC on June 27.