Insurance News - Health Insurance Executives Arrested For Hiding ...

TALLAHASSEE, Fla., Aug. 22 -- The Florida Department of Financial Services issued the following news release:

Florida Chief Financial Officer Jeff Atwater announced today the arrest of Sabiha Haider Khan, 37, and Nazeer Haider Khan, 40, executives of Quality Health Plans, Inc., located in Tampa, for intentionally filing misleading information to the Office of Insurance Regulation to conceal the financial instability of the company and placing policyholders at risk.

"When insurance companies choose not to play by the rules they put their policyholders and all Floridians at risk for their own personal gain," CFO Atwater said. "I am proud of the diligent efforts of our fraud investigators and the work of OIR in holding companies accountable for their actions and protecting the citizens of Florida."

An investigation by the Florida Department of Financial Services' Division of Insurance Fraud was initiated after the Florida Office of Insurance Regulation received misleading financial reports filed by executives of Quality Health Plans, Inc (QHP). The investigation alleges that Sabiha Khan, CEO, and Nazeer Khan, Vice President, used misleading financial statements to prolong the appearance of financial stability to allow QHP to reap financial benefits when the company had long been insolvent and did not have required assets on hand to pay claims. In December 2011, QHP was court-ordered into liquidation, which revealed executives concealed a $5 million asset which had been collateralized for a loan at Herald National Bank in New York.

Khan and Khan were booked into Leon County jail. They are charged with 13 counts of first degree felonies and, if convicted, they each face up to 30 years in prison.

All health care coverage with QHP was cancelled as of the date of liquidation, December 1, 2011. Consumers can find more information on the QHP liquidation process here.http://www.myfloridacfo.com/receiver/QHP/coverage_info.htm

Anyone with information about these or any other incidents of suspected insurance fraud is asked to call 1-800-378-0445. Citizens who provide tips can remain anonymous. The Department of Financial Services to date has awarded almost $275,000 to more than 40 citizens as part of its Anti-Fraud Reward Program. The program rewards individuals up to $25,000 for information that directly leads to an arrest and conviction in an insurance fraud scheme.

TNS CT21CT-120822-3997901 61ChengTacorda

Copyright:	(c) 2012 Targeted News Service
Wordcount:	370

Source: http://insurancenewsnet.com/article.aspx?id=355059&type=lifehealth

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