The Department of Justice announced yesterday that the federal district court in Chicago has permanently enjoined two men from marketing their phony health care reimbursement account scheme:
The court found that defendants made numerous false statements in promoting the plans and improperly administered them. For example, materials supplied to employees as part of defendants’ plans listed “athletic shoes,” “electrolysis,” “health club fees,” “soaps,” and “day care” as reimbursable expenses. The court noted that expenses such as these are reimbursable as health care expenses only in rare circumstances. Moreover, the court found that the defendants often reimbursed medical expenses without substantiating them.
United States v. Zanfei, No. 04-C-2703 (N.D. IL)
