FTC bars couple from health care business

Published on NewsOK Modified: February 20, 2013 at 2:17 pm •  Published: February 20, 2013
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NEW YORK (AP) — The Federal Trade Commission said Wednesday that it has banned a married couple, Judy and Roy Hamilton, from the health care business after the Florida couple allegedly cheated consumers out of millions of dollars in an insurance scam.

The FTC said the Hamiltons ran a telemarketing operation that contacted consumers and claimed to be offering traditional health insurance. But customers were actually paying for memberships in the Independent Association of Businesses, which has also been charged by the FTC. The IAB had presented itself as a trade association for small businesses and the self-employed, according to the Better Business Bureau's website. Customers supposedly received discounts on golf and travel, as well as some limited health care services and insurance benefits.

In the operation, customers were charged an initial fee of $50 to several hundred dollars and monthly payments that ranged from $40 to $1,000.

The FTC said the Hamiltons ran companies under the names Health Service Providers Inc., Magnolia Health Management Corp., Magnolia Technologies Corp., and Fav Marketing Inc.