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Three men from Berks County, Pennsylvania, are facing federal charges for their roles in a nationwide telemarketing scheme. Alan Redmond, Arthur Walsh, and Albert Groff, along with a fourth suspect, allegedly used deceptive tactics to sell discount health and dental plans with limited benefits. The Department of Justice stated that the scheme, which operated near Reading, Pennsylvania, collected tens of millions of dollars, leaving tens of thousands without proper coverage.
According to the Department of Justice, the scheme was orchestrated by Redmond, who managed the businesses Bene Market LLC and Seguro Medico LLC. These companies, operating under various names, falsely claimed to offer comprehensive health insurance from top insurers. In reality, they sold limited plans that provided little to no coverage, often misleading consumers into believing they were purchasing major medical insurance.
The indictment alleges that the defendants engaged in "bait-and-switch" tactics, using unlicensed sales employees and misleading scripts to deceive consumers. They also engaged in practices like "churning" and "policy-flipping" to maximize profits. As a result, many consumers faced significant medical debt due to inadequate coverage.
The scheme also involved tax evasion, with Redmond allegedly withholding over $1.2 million in trust fund taxes from employees' wages between 2019 and 2022. If convicted, Redmond faces up to 635 years in prison, while Walsh and Groff each face up to 600 years. The case is being prosecuted by Assistant United States Attorneys Samuel S. Dalke and Mary E. Crawley, with investigations conducted by the FBI and IRS Criminal Investigation.