Nearly two years after the Channel 4 I-Team exposed the actions of United Benefits of America, the federal government Wednesday slammed the company for what it calls deceptive practices.
At a New York City news conference, the Federal Trade Commission announced a crackdown on three companies -- including United Benefits of America -- that investigators said are preying on people desperate for insurance.
And a Tennessee Assistant District Attorney said what the I-Team exposed in a series of investigations laid the groundwork for federal investigators as they started looking into the practices of UBA.
Included in evidence in the federal lawsuit are all the stories aired by the I-Team into UBA's practices, including the stories featuring an I-Team hidden camera that exposed UBA supervisors training employees to lie to consumers, many uninsured and sick.
"It's disturbing on the one hand, when you look at the inside aspect and how some of this was going on. But your information, without question, was extremely helpful to this case," said Tennessee Assistant Attorney General Olha Rybakoff.
The government's lawsuit contains volumes of evidence against UBA that includes the I-Team's investigations. In those investigations, former customers and employees said the company was selling medical discount cards but convinced consumers it was major medical insurance.
Consumers, many considered uninsurable because of their serious illnesses, said those cards barely covered their expenses.
"What makes this especially appalling is that it puts people's lives in danger," Rybakoff said.
At Wednesday's news conference, the FTC compared UBA and two other companies selling these cards to hustlers.
"Like all hustlers, they are playing a dangerous game of gotcha, and they are reeking havoc with people's lives and their finances," said FTC Bureau of Consumer Protection Director David Vladeck.
The FTC filed a joint lawsuit with Tennessee's Attorney General and also shut down the company last week with the aid of state troopers.
A federal judge also froze all the assets of the company's CEO, Tim Thomas, and Thomas' wife, Kennan. Federal and state investigators said Thomas and his wife knew what they were selling was deceiving customers.
It's a claim former UBA employees and supervisors previously made to the I-Team.
The FTC said its next step is to talk to local criminal prosecutors.
"I can't promise there will be prosecutions as a result of these actions, but we will make an effort to see that there are," Vladeck said.
UBA shut down and then reopened under the name U.S. Benefits. The lawsuit is against U.S. Benefits but reaches back to actions made when it was known as UBA.
Since the I-Team began looking into the company, neither Thomas nor anyone from UBA has commented, and there is no indication in court that Thomas has hired a lawyer.
All
content ©Copyright 2000 - 2012, WSMV, Nashville, TN.
(A Meredith Corporation Station) and WorldNow. All rights
reserved.