Washington, DC–(Newsfile Corp. – July 20, 2022) – The Securities and Exchange Commission today announced charges against Health Insurance Innovations (HII) and its former CEO Gavin Southwell for concealing numerous consumer complaints about insurance products limited and short-term health conditions. HII offered. HII has since changed its name to Benefytt Technologies and became a private company.

According to the SEC order, from March 2017 to March 2020, HII and Southwell falsely told investors that HII held its insurance distributors to high compliance standards, which prohibited distributors from making false statements to investors. consumers about the health insurance products offered by HII. HII and Southwell also told investors on earnings calls and investor presentations that HII’s consumer satisfaction was 99.99 percent and state insurance regulators received very few consumer complaints regarding HII. In fact, HII tracked down tens of thousands of dissatisfied consumers who complained that HII distributors made false claims to sell health insurance products, charged consumers for products they did not authorize, and failed to cancel plans at the request of consumers. consumers. The order finds that the products provided minimal health benefits, did not cover pre-existing conditions, prescriptions or hospital care, and were not considered qualified health coverage under the Affordable Care Act, leaving many consumers with medical bills. unpaid when they sought treatment.

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“Access to health care and consumer satisfaction are increasingly important considerations for investors,” said Stacy Bogert, Associate Director of the SEC’s Enforcement Division. “Truthful and complete disclosures are critical, and we will hold companies and their executives accountable for misleading investors on these factors.”

SEC order finds that HII and Southwell violated certain anti-fraud and reporting provisions of the federal securities laws and that Southwell profited from the sale of HII Values when it inflated as a result of misconduct. Without admitting or denying the SEC’s findings and allegations, HII and Southwell agreed to a cease and desist order, HII agreed to pay an $11 million fine, and Southwell agreed to pay more than $1 million in penalties, restitution, and interest to settle the charges. .

The SEC investigation was conducted by John McNulty, Gosia Spangenberg, and Avron Elbaum with the assistance of SEC trial attorney John Timmer, Nicholas Margida, and Olivia Choe. The case was supervised by Lisa Deitch and Mrs. Bogert.

The Compliance Division’s ESG and Climate Working Group provided assistance on this matter. More information about the Working Group can be found here.

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