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FTC Sues to Stop Deceptive Health Care Scheme

Innovative Partners, LP; American Collective, LP; Papyrus Green Investments LLC; Health Plan Administrators, LLC; Amani Ibrahim Shokry; Ahmed Ibrihim ShokryApril 22, 2026Federal Trade Commission

Summary

The FTC filed a complaint and obtained a temporary restraining order against six defendants operating a deceptive health care scheme that impersonated government and insurance carriers to sell fake comprehensive health plans. The defendants allegedly charged consumers without express informed consent, failed to disclose material terms including cancellation processes, and misled consumers into paying for inadequate coverage that left many with substantial medical debt. The FTC seeks refunds for affected consumers and alleges violations of the FTC Act, Telemarketing Sales Rule, Impersonation Rule, and Gramm-Leach-Bliley Act.

Remedy

The U.S. District Court for the Southern District of Florida issued a temporary restraining order halting the defendants' deceptive operations. The FTC's complaint seeks refunds for consumers harmed by the scheme, and requests injunctive relief to permanently stop the unlawful practices.

InjunctionConsumer Refunds

Contract Impact

In-house legal teams should review customer agreements, vendor contracts with telemarketing service providers, and insurance-related service agreements. Key clauses to audit include consent provisions to ensure express, informed consent for all charges (especially recurring payments), negative option and automatic renewal clauses requiring clear disclosure of cancellation steps, material terms disclosure sections, telemarketing compliance representations and warranties, and data protection clauses for health and financial consumer information. Agreements should also prohibit impersonation of government entities or third-party carriers, and include breach notification requirements for unauthorized use of consumer data.

Contract Search Terms

informed consentnegative option clausecancellation termsmaterial terms disclosuretelemarketing complianceimpersonation safeguardshealth data protectionfinancial information security

Laws Cited

FTC ActTelemarketing Sales RuleImpersonation RuleGramm-Leach-Bliley Act

Violation Types

Entity Details

Entity

Innovative Partners, LP; American Collective, LP; Papyrus Green Investments LLC; Health Plan Administrators, LLC; Amani Ibrahim Shokry; Ahmed Ibrihim Shokry

Industry

Insurance

Official Sources

Source Evidence

Event Date
"April 22, 2026"
Entity Name
"The defendants include Innovative Partners, LP, which does business as Innovative Health Plan or Healthcare Plan, and its Chief Technology Officer Amani Ibrahim Shokry; American Collective, LP, which does business as ACLP Health Plan; Papyrus Green Investments LLC; and their owner Ahmed Ibrihim Shokry, as well as Health Plan Administrators, LLC."
Laws Cited
"the defendants violated the FTC Act, the Telemarketing Sales Rule, the Impersonation Rule, and the Gramm-Leach-Bliley Act"
Violation Types
"unfairly charge consumers without their express, informed consent"
Violation Types
"fail to disclose material terms and conditions of their negative option feature, specifically the steps consumers must take to cancel the monthly recurring payments"
Remedy Types
"the court entered a temporary restraining order against the defendants"

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