Health Plan Cos. Take $2.4M Hit In Marketing Fraud Case

Law360, New York (August 2, 2011, 8:40 PM EDT) -- Two bankrupt companies accused of offering a fraudulent discount medical plan disguised as health insurance were hit Tuesday in Massachusetts state court with $2.4 million in restitution, civil penalties and attorneys' fees.

The court ordered Consumer Health Benefit Association and National Benefits Consultants LLC to pay about $587,000 in restitution to Massachusetts consumers, $1.8 million in civil penalties to the commonwealth and $99,000 in attorneys’ fees, according to a statement from Massachusetts Attorney General Martha Coakley.

Coakley, who brought the suit in October 2009 as part...
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