A federal court has temporarily halted a Florida-based operation that the Federal Trade Commission alleges collected more than $91 million by deceiving consumers into purchasing fake health insurance coverage.
The FTC filed its complaint April 7 in the U.S. District Court for the Southern District of Florida, and a federal judge signed a temporary restraining order April 15, freezing the defendants’ assets and appointing a receiver. The agency announced the action publicly on April 22.
The defendants include Innovative Partners, which operates as Innovative Health Plan or Healthcare Plan; American Collective, which operates as ACLP Health Plan; Health Plan Administrators; Papyrus Green Investments; Ahmed Ibrahim Shokry, who the complaint identifies as the controlling owner of the enterprise; and his sister, Amani Ibrahim Shokry, who served as chief technology officer of Innovative Partners.
According to the complaint, the scheme has operated since at least 2023. The FTC alleges that telemarketers working for the defendants impersonated government agencies, state and federal health insurance marketplaces, and private insurers to sell products they falsely described as comprehensive PPO plans with no deductibles and low or no copays. According to the complaint, the plans consisted of limited medical discounts, capped payouts for a narrow set of medical expenses, and ancillary products with no out-of-pocket maximum for consumers. Under one plan, the complaint said that the most a consumer paying roughly $300 per month could recover in illness-related benefits annually was $850.
The complaint also alleges the defendants targeted already-insured individuals by impersonating their existing insurer and falsely telling them their coverage had lapsed or would be canceled unless they made an immediate payment.
The FTC is seeking a permanent injunction, consumer refunds, and monetary relief, with the defendants scheduled to appear for a preliminary injunction hearing on April 29.
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