The lead generation industry is fascinating.
If there is one over arching mantra it is this– monetize all data available. And sometimes that can get folks into BIG trouble, especially when lead buyers end up pitching consumers something less valuable than what they signed up for.
Take the unfortunate case of Bene Market LLC and Seguro Medico LLC. These companies were apparently buying health insurance leads but then selling consumers limited benefit plans.
This doesn’t sound too out of the ordinary now does it?
Folks sell final expense to those seeking medicare. They sell solar to those seeking home loans. They sell insurance to those seeking an auto finance loan.
Its all about the fine print right?
So lead generators like to tell themselves…
Well the feds didn’t care much about the fine print when they raided the companies and arrested four of their executives. The indictment suggests the defendants intentionally duped consumers into purchasing lesser quality products with limited benefits–causing some consumers to even lose coverage and have to pay for costly treatments out of pocket.
If convicted, the four guys allegedly involved with the scam could face heavy sentences– i.e. over 600 years in prison.
Yikes. I barely intend to live that long.
But it has me wondering– did these guys intentionally dupe consumers into thinking they were buying actual health insurance, or are they essentially just the same old kuckleheads you see at LeadsCon looking to buy multi-vertical leads? Or might they even be victims of a sort– mislead by lead sellers attempting to “monetize” leads by sending consumers who could not qualify for traditional plans to knuckleheads willing to try to sell them limited benefits plans?
Truthfully, I don’t know. But the fact these guys are facing CENTURIES in prison for doing essentially what many others are also doing should be a real wake up call.
Don’t get me wrong I am not rooting for these guys. If they’re scumbags I hope they rot in jail. But I do look forward to them having their day in court because I’d like to get a better understanding of the mindset here.
For instance, if they asked lead suppliers to provide leads of people interested in limited benefit plans, I’m not sure how they can be blamed for them trying to sell limited benefit plans to the purchased leads.
Then again that happens all the time in TCPAWorld now doesn’t it? Lead gets sold and even if it comes with full reps and warranties, the lead buyer ends up holding the bag in a resulting suit.
So is this Bene Market LLC suit just a TCPA lead gen class action on steroids? Or is there more to it?
Like I said, I am really looking forward to the evidence here.
To give the prosecutors their due, the indictment suggests these guys were “representing that the plans provided comprehensive health insurance coverage, also known as “major medical insurance,” or provided coverage equivalent to major medical insurance, when they did not.” So yea, that sounds like lying and tricking and scamming.
One other note, these guys were apparently calling themselves “the national enrollment center for health insurance”–sound familiar? Lead generators and sellers commonly give themselves vague little names to trick consumers– this is NEVER good idea. It may end up as part of an indictment against you one day.
Again, this is not something to be taken lightly folks. Per the press release:
If convicted of the conspiracy, wire fraud, and tax offenses, defendant Alan Redmond faces a maximum possible sentence of 635 years’ imprisonment, a five-year period of supervised release, and a $6,750,000 fine, along with restitution and forfeiture of various properties and money. Defendants Arthur Walsh, Jesus Barrera, and Albert Groff each face 600 years’ imprisonment, a five-year period of supervised release, and a $5,000,000 fine, along with restitution and forfeiture.
So yeah, do NOT trick or lie to consumers.
Anyone out there selling products that might not be as advertised you should probably stop. Also HIGHLY recommend marketers and lead buyers out there give Troutman Amin, LLP a call to check your flows and processes. Again, it is possible these guys were just unsophisticated and dumb– i.e. “everyone else does it” sorts. (You know who I am talking about.) That means they could have stayed out of jail just by making some tweaks to their scripts… I mean, eesh.
Be smart folks.
Smart money is long money. And long money doesn’t go to jail because it INVESTS in wise counsel and doing things the RIGHT way.
Let those who have ears to hear, hear.
Also, see you next month!
Chat soon.
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When Czar E. J. Troutman speaks, telemarketers should listen….
They’re scammers. Period. End. Full stop. No room for doubt whatsoever, if the allegations here are true:
“As alleged in the indictment, the Bene Market Group paid lead generators for the transfer of live calls with consumers looking to purchase healthcare insurance. Once transferred over, the Bene Market Group employees falsely told consumers that the company was “the national enrollment center for health insurance” and worked as a third-party broker to search and compare health insurance products across the entire marketplace to find the best coverage at the lowest rate. The Bene Market Group also falsely claimed to “work with over 30 of the top A-rated insurance companies” and to sell comprehensive health insurance policies from well-known, blue-chip insurers. In reality, the Bene Market Group did not search the marketplace, did not work with the touted A-rated carriers, and did not even sell major medical insurance. Instead, the Bene Market Group peddled a limited set of discount plans that had lower and more restricted benefits than major medical insurance. In some instances, the limited benefit plans sold by the defendants were not even insurance.
The indictment charges further that, as a result of the defendants’ bait-and-switch scheme, tens of thousands of purchasing consumers were left without insurance coverage for the majority of their medical, dental, and prescription costs. For some consumers with serious health care needs, the lack of coverage from the limited benefit plans sold by the defendants caused financial hardship and left them in significant medical debt in the tens and hundreds of thousands of dollars.
According to the indictment, in order to keep the fraud scheme going, Redmond and the manager defendants used unlicensed sales employees to sell the limited benefit plans; bundled products together to mimic major medical insurance; trained the sales employees with misleading scripts and sales pitches to use on the phones; used a variety of trade names and aliases when selling plans; engaged in “churning” and “policy-flipping” by reselling and upselling existing consumers; omitted and downplayed material restrictions about the limited plans sold; overbilled and double-billed consumers; told consumers to ignore or disregard the verification disclaimers or disclosures; altered recorded sales calls after the fact to deceive regulators; withheld information about the limited benefit plans from sales employees; ignored complaints from consumers, carriers, and regulators; and refused or delayed refunds to consumers.”
Source: https://www.justice.gov/usao-edpa/pr/four-businessmen-and-two-companies-charged-nationwide-telemarketing-fraud-scheme
if you have been a victim, the FBI wants to talk to you. https://forms.fbi.gov/victims/phhcftvictims