MEDICAL BILLING  FTC Billing Scams Shutdown

 

Four companies, operating as a common enterprise under various business entities and fictitious names, have agreed to post $150,000 bonds before marketing any medical billing employment opportunities in the future, as part of a settlement with the Federal Trade Commission.

The FTC filed a complaint in federal district court alleging that the defendants, collectively referred to as MediWorks, telemarketed a deceptive medical billing employment opportunity to consumers.

According to the complaint, the defendants promised consumers that they would earn a specific level of earnings, such as $4,800 to $8,000 per month. They also promised to provide a list of doctors who purportedly were ready to hire the defendants' customers to process their medical claims.

 

The case against the defendants was filed as part of "Project Biz-illion$," a multi-prong attack by the FTC, the Justice Department, and law enforcement officials from 29 states on get-rich-quick business and employment scams.

The FTC's complaint named Mediworks, Inc.; MediDistribution, Inc.; United Legal Associates; Mediworks; Robert D. Seals; Tate Stringer; Cory Dixon, doing business as MediPros; and Corinna Krueger.

Other medical billing software companies to watch out for include MedQuest, Titan Business Solutions and MorganECP Billing & Processing.

 

The complaint alleged that the defendants, advertising in newspaper ads and on the Internet, misrepresented the earnings consumers would realize, the ease of signing up doctors as clients, and the availability of their money-back guarantee. Consumers paid $325 to $369 for the company's medical billing software.

 

In four separate settlements the defendants would be prohibited from making any false or misleading statements to consumers concerning the sale of any medical billing, employment, work-at-home, business or investment opportunities and would require the defendants to disclose the success rate of any employment or business opportunity they offer in the future.

 

The settlements also require each of the defendants to post a $150,000 performance bond before engaging in any future medical billing, employment, work-at-home, business or investment opportunities.

 

TAKE ACTION!

Have you been scammed by a medical billing company? If so, report the scammers. Visit Scram Scams to learn more about medical billing scams.