- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2022-08-09T20:36:00
The Federal Trade Commission (FTC) ordered a Florida-based company to refund $100 million to consumers who received sham healthcare insurance plans bundled with services they did not order.
Benefytt Technologies, along with two subsidiaries, former Chief Executive Gavin Southwell, and former Vice President of Sales Amy Brady, lied to consumers “about their sham health insurance plans” and used “deceptive lead generation websites to lure them in,” the FTC alleged in a press release Monday. Benefytt also made it difficult to cancel plans and services, including those they did not order.
Benefytt and Southwell were repeatedly warned by the company’s compliance professionals that sales representatives from Benefytt and a major subsidiary misled customers about the health plans offered, according to a complaint filed by the FTC in U.S. District Court for the Middle District of Florida. Those warnings were ignored, the complaint stated. The practices began when Southwell, a former chief risk officer for a large independent global wholesale and reinsurance brokerage, joined the company, the FTC said.
THIS IS MEMBERS-ONLY CONTENT. To continue reading, choose one of the options below.
News and analysis for the well-informed compliance or audit exec. Select an option and click continue.
Annual Membership $499 Value offer
Full price one year membership with auto-renewal.
Membership $599
One-year only, no auto-renewal.
Health Insurance Innovations and its former CEO Gavin Stockwell will pay a total of more than $12 million to settle SEC charges of misrepresenting the robustness of the company’s compliance program and misleading investors about customer complaints.
Purported “testimonial and review” site Rytr agreed to stop selling its program that used artificial intelligence to create fake content as part of a consent order with the Federal Trade Commission.
Whether you’re a multinational telecommunications company looking to certify your anti-corruption program post-settlement, or a biochemical company victimized by a “rogue” employee, seeing the light at the end of the enforcement tunnel isn’t always easy.
Bank of America avoided a monetary penalty in agreeing to settle charges with the Treasury Department’s Office of the Comptroller of the Currency but was ordered to shore up previously disclosed deficiencies in its Bank Secrecy Act/anti-money laundering (BSA/AML) and sanctions compliance programs.
Aviation maintenance services provider AAR Corp. will pay nearly $56 million to settle charges that it violated the Foreign Corrupt Practices Act when it paid bribes to government officials in Nepal and South Africa.
JPMorgan Chase, Wells Fargo Bank, Bank of America, and the company behind online money transfer app Zelle were sued by the Consumer Financial Protection Bureau for allegedly failing to safeguard Zelle’s network and causing customers to lose $870 million, the CFPB alleged.
