Federal Judge Shutters Health Insurance Plan at FTC’s Request

Among many other alleged transgressions, Simple Health Plans is accused of using the logos of well-known health insurance companies to bilk victims out of millions.

Simple Health Plans is temporarily shuttered, as well it should be if allegations leveled at the Florida-based company by the Federal Trade Commission turn out to be true. Judge Darrin P. Gayles of the Federal District Court in Miami issued a temporary restraining order against the company, which is accused of selling shoddy insurance plans to unsuspecting victims. The FTC is suing Simple Health Plans and its CEO Steven J. Dorfman, the New York Times reports. Five affiliates of the company are also being sued.

They are accused of using “deceptive tactics to sell skimpy health insurance products that skirt requirements of the Affordable Care Act and left tens of thousands of people around the country with unpaid medical bills,” the Times reports.

Dorfman’s attorney, Ryan D. O’Quinn, said yesterday that Dorfman “vigorously denies the allegations of misconduct made by the Federal Trade Commission, and he looks forward to having an opportunity to defend himself in the appropriate forum.”

It seems to have been an allegedly bipartisan scam, as websites lured customers with Trumpcare and Obamacare logos. The FTC charges that Dorfman “siphoned millions of dollars of proceeds from defrauded consumers to pay for private jet travel, gambling sprees in Las Vegas, the rent for his oceanfront condominium, luxury automobiles, over $1 million in jewelry, and even the nearly $300,000 cost of his recent wedding at the St. Regis Hotel in Miami.”