FCC proposes $225mn fine on Texas insurance frauds for massive robocall campaign

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FCC proposes $225mn fine on Texas insurance frauds for massive robocall campaign

The US FCC (Federal Communication Commission) had proposed on Tuesday a record $225 million in punitive measures against John Spiller and Jakob Meyers, two telemarketers who the US FCC claimed had allegedly made over 1 billion illegal robocalls offering fraud life insurance plans from reputed insurers.

In point of fact, the five-member US Federal Communication Commission voting panel, Chaired by Ajit Pai, had voted unanimously on Tuesday to propose the $225 million in punitive actions on individuals such as John C. Spiller II and Jakob Meyer over accusations that the aforementioned individuals were involved in a scheme to make millions of robocalls using their companies such as JSquared Telecom and Rising Eagle, in a bid to falsely claim health insurance plans from major industry players such as Blue Cross Blue Shield, Cigna, Aetna and UnitedHealth Group.

Aside from that, adding that the telemarketers could have flooded customers phones with robocalls in order to make them believe that the calls were from well-known insurers, but they chose smaller and lesser-known entities for some reasons, US FCC (Federal Communication Commission) Chairman Ajit Pai said shortly after the announcement, “Rising Eagle primarily used spoofed Caller ID numbers to flood consumers with pre-recorded calls that...

misled consumers into thinking that the calls were from well-known and reputable health insurance providers. Instead, consumers were offered short-term, limited-duration health insurance plans offered by lesser known entities— a far cry from expectations”.

US Attorney Generals sue the telemarketers alongside US FCC

Apart from that, in separate legal proceedings, Attorney Generals of the US states of Texas, Arkansas, Michigan, Missouri, North Carolina and Ohio, led by the Texas Attorney General Ken Paxton, had also sued the same pair on Tuesday alongside their Texas-based businesses such as Rising Eagle Capital Group LLC and JSquared Telecom LLC., in the US district court of Texas, accusing them of violating the Telephone Consumer Protection Act, while the Texas Attorney General Paxton was quoted saying that the pairs, Spiller and Mears, had been involved in generating billions of abusive calls over the past two years using Rising Eagle and JSquared Telecom, adding “The calls, made both to residential and cellular phone, confront consumers with pre-recorded messages pitching healthcare products or automobile extended warranties.