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 in large part from South Carolina.

Director Richardson was quoted as saying, “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 scheme.

As of March 26, 2010 the fraudulent insurance operation left approximately 19 million in outstanding claims.

South Carolina company, SouthEast Insurance Advisors, LLC., which the order says may be incorporated in Delaware, maintains a post office box on the Isle of Palms; the company is thought to be controlled by Worthy.

The other company believed to be involved in the scheme is Wilshire Holding, LLC, whose only address is a post office box at the address of a UPS store in suburban Columbia. Wilshire is not licensed by the state Insurance Department.

Others alleged to be involved in the operation and named in the order include:

• Kathleen D. Cauthen
• David L. Clark
• Lousi DeLuca
• Gary L. Karns, Jr.
• David L. Nellson
• Worldwide Family Benefits Association, Inc.,
• Wilshire Holding, LLC
• Viking Administrators, LLC
• Beema-Pakistan Company Limited
• Serve America Assurance, Ltd.
• SouthEast Insurance Advisors, LLC
• United States Contractors Trust
• Insurance Resource Group
• Integrated Insurance Marketing, Inc.
• CEO Clubs, Inc.
• Hudson Valley Consultants, LLC d/b/a CEO Club Benefits
• Metropolitan Business Alliance, LLC d/b/a National Association of Business Leadership
• Real Benefits Association, LLC

The order requires the respondents to stop selling or taking applications for insurance and to hold any insurance money collected.

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.