Smart SpendingSmart Spending

Drug 'discount card' defrauded seniors, FTC says

Feds say the telemarketing operation, which is being shut down, targeted seniors and pretended to be connected with Medicare, Social Security or health insurers.

By Mitch Lipka Sep 17, 2013 10:58AM

Pills (© Corbis)A scam that targeted seniors all over the country -- duping them into paying to be part of a medical discount program by claiming affiliations with Medicare, Social Security or health insurers -- is being shut down, the Federal Trade Commission said Monday.


The scam, whose operators are in the U.S. and Canada, involved a Montreal-based telemarketing operation whose goal was to get seniors' bank account information and then start withdrawing money.


Consumers often received nothing in return, or a discount card that could be obtained for free from a variety of websites.


The FTC said the cards provided no value to anyone who had any other health insurance coverage.


"This scam, which targeted and deceived our nation’s seniors, is as cynical and wanton as they come," said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. "We look forward to bringing this operation to a halt and working to get relief for the victims."


The FTC filed a complaint in U.S. District Court in Chicago asking that the operation be shut down and consumers who lost money be compensated. A judge issued a temporary restraining order at the government's request. The order froze the defendants' assets and, for now, stopped the scam. The FTC alleged the sales pitches violated federal telemarketing laws and were deceptive.


The FTC said the scam involved having the telemarketers in Canada get the consumers' bank account information and then relay it to those in the U.S. who were part of the scheme. They, in turn, would use a process called a "demand draft" and would draw about $300 from the victim's bank account.

U.S. defendants in the case include AFD Advisors, LLC, of Wisconsin (aka AFD Medical Advisors); AMG Associates, LLC, of Delaware (aka AMG Medical and AMG Medical Associates; Aaron F. Dupont, individually and as an officer of AFD Advisors and AMG Associates; CAL Consulting, LLC, of Georgia (aka Clinacall); Charles A. Lamborn, III, individually and as an officer of CAL Consulting; and Park 295 Corp, of New York.

Canadian defendants are 9262-2182 Quebec Inc; Stephanie Scebba, individually and as an officer of 9262-2182 Quebec Inc.; 9210-7838 Quebec Inc; and Fawaz Sebal, also known as Frank Sebag, individually and as an officer of 9210-7838 Quebec Inc.


More from MSN Money:


           

1Comment
avatar
Perhaps the FBI can task NSA to do simple frame trace and gather evidence quickly to prosecute the national  & international telefraud ? All that equipment and personel, especially private corps, can do some actions to use the voice & data intercepts intelligently.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

ABOUT SMART SPENDING

Smart Spending brings you the best money-saving tips from MSN Money and the rest of the Web. Join the conversation on Facebook and follow us on Twitter.

VIDEO ON MSN MONEY

TOOLS

More