news 4 days ago

Accused health insurance scammer loses key battle in company's fight to survive

Sun Sentinel — Ron Hurtibise Sun Sentinel

May 15--Accused health insurance scammer Steven J. Dorfman has lost a key battle in his fight to prevent the Federal Trade Commission from permanently shutting down his Hollywood-based health insurance company, Simple Health Plans.

A federal judge this week granted the FTC's bid for a preliminary injunction that will keep the company shut down and its assets frozen as the agency's civil case against the company continues.

"Through its evidence, the FTC gives a well-documented account of a classic bait and switch scheme -- aided by rigged internet searches, deceptive sales scripts, and predatory practice," the ruling states.

The FTC accuses the company of duping consumers into thinking they were buying comprehensive health insurance covering pre-existing conditions, while Dorfman siphoned millions for expensive cars, jewelry, travel, and a $1.4 million wedding last spring.

The company has been shut down since late October, when the FTC secured a temporary restraining order putting its assets under control of a court-appointed receiver.

Dorfman and Simple Health Plans immediately filed a notice to appeal the preliminary injunction.

This story will be updated. Please check back later.

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