DALLAS FIRM SHUT DOWN BY TDI

A March hearing has been scheduled for the owner of a Maryland company whom Texas insurance regulators allege posed as president of a Dallas insurance company on at least one medical policy. Dr. Maruthi S. Manney, owner of SAI Plus, is also accused by the Texas Department of Insurance of participating in the sale of insurance without a license.

In December, the department asked a judge to shut down SAI Plus’ operations in Texas and fine the firm $1 million. The hearing is scheduled for March 26.

Meanwhile, Knight Ridder/Tribune News service reports that court documents filed in Greenbelt, Md. Show that Manney and others involved with SAI Plus are under investigation by the FBI, the U.S. Postal Inspection Service and the federal Pension and Welfare Benefits Administration because of fraud allegations and complaints from policyholders.

According to the report, a federal magistrate authorized federal investigators to seize records from SAI Plus and Manney. Knight Ridder also reported that, last year, SAI Plus held $13 million in contracts to provide medical coverage for thousands of Texas residents, including employees of seven school districts and 35 Dallas-area businesses.

TDI alleges that SAI Plus failed to obtain a third-party administrator’s license before contracting with Texas employers to manage health plans for their workers. TDI also alleges that SAI Plus failed to purchase some of the insurance promised to customers.

Also, the Dallas insurer refused to accept some of the health plans forwarded to it by SAI Plus. Dallas General Life was placed under state supervision in July 1999 due to financial difficulties. The following September, SAI Plus made its investment. Four months later, the company was released from supervision.

Topics Texas