FTC Calls Simple Health Plans, LLC a ‘Sham’ that Cost Victims Millions

CONSUMER ALERT: The FTC stated in a March 18, 2019 filing that “thousands of [Simple Health’s] victims continue to be charged each month by the third-party administrator that issued Defendants’ virtually worthless insurance products”.

Did you buy a short term insurance plan from Simple Health?

If so, call the Sonn Law Group at 305.912.3000 or contact us online using the short form below. We can help you recover your payments.

CONSUMER ALERT: (November, 2018) The FTC obtains an injunction against Steven Dorfman and Simple Health Plans, alleging deceptive sales of health insurance policies; Health Insurance Innovations (HIIQ) terminates Simple Health as sales agent.

Simple Health Plans: The Alleged Fraud

On Thursday November 1st, the FTC filed a Temporary Restraining Order (TRO) against Simple Health Plans LLC, et al. in order to freeze the assets of the company.

The Federal Trade Commission is working to permanently shut down Simple Health Plans LLC, which it asserts is a ‘sham’ health insurance provider whose owner, Steven Dorfman, has diverted millions of dollars for his own personal use.

According to the FTC, Simple Health Plans was marketing itself to consumers as a provider of comprehensive insurance policies that were compliant with the Affordable Care Act.

In reality, Simple Health customers found themselves deep in debt after receiving medical care they thought was covered with no deductibles. In essence, customers of Simple Health were left completely uninsured “and subjected to nearly unlimited financial exposure”.

At the same time that his alleged victim were reeling from the realization that they were liable for, in some cases, tens of thousands in medical expenses, Dorfman was spending lavishly, including:

Steven J. Dorfman pictured at an event commemorating a $25,000 donation by his company, Simple Health Plans LLC, to a nonprofit organization in April 2018. Image Source.

• More than $1 million in jewelry
• Luxury vehicles, including a Rolls-Royce Wraith and Lamborghini Aventador
• Cash transfers of $368,000 to The Cosmopolitan of Las Vegas Hotel and Casino
• A $57,000 tab incurred at one nightclub in a single evening, part of $341,000 in total nightclub spending
• Rent on his $1.4 million oceanfront condominium
• Nearly $300,000 for his recent wedding at The St. Regis Bal Harbour Resort in Miami, “for which Dorfman spent $133,000 on flowers alone.”

If you purchased a bad health insurance plan through Simple Health Plans, or one of their subsidiaries, we want to hear from you. Contact the Sonn Law Group online or call us at 305.912.3000. Our attorneys are standing by to listen to your story and answer your questions.

Disclaimer: This article contains opinions and NOT statements of fact in any way whatsoever. The information here is general information that should not be taken as legal advice. No attorney-client relationship is established between you and our attorneys by reading this article. This article is attorney advertising and should not be used as a substitute for legal advice from a qualified lawyer.