Earlier this week, South Carolina Director of Insurance Scott Richardson issued a cease-and-desist order reporting that Isle of Palms resident William M. Worthy, II, organized and spearheaded a nationwide multimillion-dollar health insurance fraud scheme.
The insurance fraud scheme, believed to have victimized at least 269 South Carolinians, involves the sale of limited-benefit medical plans backed by nonexistent insurance to unsuspecting consumers through associations and was orchestrated mainly from South Carolina.
Director Richardson said, “Unfortunately, scams such as this one leave those South Carolinians who can least afford it stuck with unpaid medical bills, which they thought were covered by insurance.”
Sixteen other states have taken regulatory action against those involved in the insurance fraud scheme.
As of March 26, 2010, the fraudulent insurance operation left approximately 19 million in outstanding claims.
The order says SouthEast Insurance Advisors, LLC., a South Carolina company that may be incorporated in Delaware, maintains a post office box on the Isle of Palms; Worthy is thought to control the company.
The other company believed to be involved in the insurance fraud scheme is Wilshire Holding, LLC, whose only address is a post office box at the address of a UPS store in suburban Columbia. The state Insurance Department does not license Wilshire.
The order requires the respondents to stop selling or taking insurance applications and hold any collected insurance money.
We will keep you updated on the situation. If you purchased insurance from any of the companies named above, contact the Strom Law Firm, LLC today for a free consultation to discuss your legal rights.
