In filings from earlier this month, the FTC revealed that fraudster Steven Dorfman, Founder and CEO of Simple Health Plans, had tens of millions of dollars in overseas accounts.
Dorfman and his company originally got the FTC’s attention when purchasers of Simple Health insurance plans realized they had been grossly misled about their coverage.
In the April 8 filing, the FTC disclosed evidence that Dorfman controlled roughly $20 million in two accounts, one belonging to a call center in Panama and the other to a call center in the Dominican Republic.
However, even though Dorfman’s insurance scheme took in nearly $150 million in commissions, the FTC found just $3.9 million when it seized Dorfman’s accounts. According to the FTC filing, what happened to the money in the overseas accounts “remains an open question.”
Dorfman denies that transfers to those accounts were anything but contractual payments, rejecting the implication that the call centers were shell companies.
The FTC filing also revealed that Dorfman bought 20 “burner” phones to fake Better Business Bureau reviews and that Dorfman oversaw the development of fear-based sales scripts for Simple Health’s telemarketers.
The scripts were reportedly designed to create a “sense of urgency and fear as to whether [the customers] are eligible for any type of plan.” Simple Health claimed its plans were comprehensive, but in reality, they only had a maximum annual reimbursement potential of $3,200.
The FTC is currently seeking a court ruling that would allow the FTC to maintain control of Simple Health until the conclusion of the investigation. Without such a ruling, the receiver overseeing assets would not be authorized to reach out to Simple Health’s 37,000 customers and offer them an opportunity to cancel.
Source: South Florida Sun Sentinel
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