Pennsylvania Shuts Down Unlicensed Insurance Telemarketing Scheme with Nationwide Reach

A major telemarketing fraud scheme tied to insurance misrepresentation has led to the indictment of four individuals and two companies based in Pennsylvania. The Pennsylvania Insurance Department (PID) began investigating the entities—operating under names like Seguro Medico, Quick Health, and YourBenefits4U—in 2015. The companies falsely claimed to compare their health insurance offerings with other plans on the market, misleading consumers into purchasing inadequate coverage. PID also discovered that these businesses submitted thousands of insurance applications without being properly licensed.

Despite having their licenses revoked in Pennsylvania in 2022, the companies allegedly continued operating in other states. PID remained vigilant, fielding consumer complaints from across the U.S. and coordinating with federal agencies including the FBI and IRS Criminal Investigation to support broader legal action. The fraudulent activity is believed to have caused significant financial harm to consumers nationwide.

In addition to consent orders that barred the companies from doing business in Pennsylvania, PID’s ongoing enforcement efforts played a key role in uncovering the full extent of the scheme. Officials emphasize the importance of checking for proper licensure, being skeptical of unsolicited insurance offers, and avoiding high-pressure sales tactics.

Pennsylvanians concerned about potential insurance fraud are encouraged to report suspicious activity through PID’s hotline or website. As Commissioner Michael Humphreys noted, protecting consumers from deceptive practices remains at the core of PID’s mission.