CareFirst of Maryland filed a federal lawsuit against a Maryland insurance broker and his brother for what it called a “health insurance fraud conspiracy of breathtaking scale and audacity.”
CareFirst filed the suit Monday in U.S. District Court for Maryland, saying Avraham Rappaport, an insurance broker, and his brother Eliezer Rappaport, a financial planner, defrauded the company of more than $50 million from their Towson-based business.
According to the suit, the brothers’ scheme allowed international patients to fly to America for expensive, specialized medical procedures — and stuck CareFirst with the bills.
Here’s how it allegedly worked: Patients signed up for a Maryland-based BlueCross BlueShield insurance plan using a variety of addresses connected to the Rappaports, paid some monthly premiums, and CareFirst covered their medical bills. After receiving the treatment, the…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.