PHILADELPHIA, PA – Federal prosecutors have unveiled a superseding indictment charging four individuals and two companies with conspiracy and wire fraud in connection to an alleged multimillion-dollar telemarketing fraud scheme targeting healthcare consumers nationwide.
The charges involve Alan Redmond, 42, of Wyomissing, PA; Arthur Walsh, 65, of West Lawn, PA; Jesus Barrera, 32, of Dillsburg, PA; and Albert Groff, 44, of Wernersville, PA. Additionally, two companies, Bene Market LLC and Seguro Medico LLC, collectively operating as the Bene Market Group, were named as defendants.
According to allegations, the Bene Market Group operated a call center in Reading, PA, using deceptive practices to sell discount health and dental plans under names such as Quick Health, Q Health, Benefits Now, Express Benefits, and YourBenefits4U. The indictment claims the operation misled consumers by falsely advertising these plans as comprehensive health insurance while selling limited-benefit plans that did not meet the needs of buyers.
Allegations of Fraudulent Practices
Federal authorities assert that the alleged scheme, which ran between January 2018 and December 2022, systematically deceived consumers by employing bait-and-switch tactics. Prosecutors allege the businesses falsely represented themselves as national brokers for major medical insurance coverage and claimed they worked with over 30 top-rated insurance carriers, which investigators say was not true.
Employees of these companies allegedly misled consumers into thinking they were buying comprehensive health insurance plans. However, the indictment claims the sold products lacked sufficient medical coverage, causing financial harm to tens of thousands of consumers left with massive out-of-pocket expenses, including tens and hundreds of thousands of dollars in medical debt.
To perpetuate the scheme, the indictment alleges the defendants used unlicensed sales representatives, employed misleading sales scripts, and bundled inadequate plans to make them appear similar to legitimate insurance products. Additionally, they are accused of instructing employees to suppress important plan details, altering sales call records, avoiding consumer complaints, and denying refunds to dissatisfied buyers.
Further, prosecutors allege that Alan Redmond used fraudulently obtained funds for personal luxuries, including real estate, jewelry, private school tuition, and limo services. Redmond is also accused of withholding over $1.2 million in employee payroll taxes from 2019 to 2022 without remitting the funds to the IRS.
Potential Penalties
If found guilty, Redmond faces up to 635 years in prison, restitution, forfeiture of assets, and a maximum fine of $6.75 million. Walsh, Barrera, and Groff each face up to 600 years of imprisonment and fines of $5 million.
Investigation and Prosecution
The case was investigated by the FBI, IRS Criminal Investigation, and the Pennsylvania Attorney General’s Office. Assistant United States Attorneys Samuel S. Dalke and Mary E. Crawley are leading the prosecution.
Authorities emphasize that these charges remain allegations. All defendants are considered innocent unless and until proven guilty in a court of law.
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