Shuttered business ordered to pay $8.7M

APPLETON - An Appleton-based business that was accused of running a multi-state medical insurance scheme, tricking seniors and Spanish-speaking customers, has been ordered to pay $8.7 million in restitution.

The judgement against Partners in Health Care and its principal, Gary L. Kieper, concludes a nearly five-year case.

The Better Business Bureau of Wisconsin began an investigation in September of 2011 after receiving complaints from consumers across the country. The complaints alleged PIHC mislead consumers who believed they were purchasing medical insurance but had instead been sold a worthless "medical discount card."

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The BBB said it received complaints between 2011 and 2014 from consumers in 32 states. Complaints included product misrepresentation, delay in receiving refunds, promised and full refunds not received, dissatisfaction with the product, difficulty in reaching the company, product not received in a specific time frame, non-information regarding the cancellation policy and inability to cancel.

“BBB regularly conducts investigations and is quick to alert law enforcement agencies when wrongdoing is discovered,” said Jim Temmer, chief executive officer and president of BBB. "In this case, people in desperate need of health insurance lost money because they were swindled by this firm and its marketers.”

Kieper, a Menasha resident, told USA TODAY NETWORK-Wisconsin on Thursday that he is appealing the decision.

"If we called anybody that thought they accepted insurance, we refunded their money 100 percent," he said. "My intent was to be judged by a jury of my peers and not by a judge over an order."

The BBB referred the case to the FTC in October of 2013. In September of 2014, the FTC shut down and sued PIHC. The final judgement against PIHC was granted in federal court on June 27.

The BBB said Kieper responded to nearly all complaints filed with the BBB. He usually stated the consumer did not purchase from the policy for PIHC but instead enrolled through an out-of-state marketing company. Kieper also stated that consumers did not request a refund in the allotted time, the BBB said.

Ethan Safran: 920-996-7267, or esafran@postcrescent.com; on Twitter @EthanSafran