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Restaurant Owner Falls For Insurance Scam

Employer Signed With Uninsured Company

POSTED: 8:13 pm EDT March 24, 2008

The owner of two Connecticut restaurants ended up the victim of scam while trying to secure health insurance for his employees.

Ed Moustafa said that he received a fax from a company offering affordable health insurance.

Moustafa, eager to provide his employees with insurance, said he signed up.

He said he began doing research on the company, Consolidated Workers Association, but couldn't find anything online. He said he then noticed two withdrawals totaling more than $800 from his bank account.

Channel 3 Eyewitness News reporter Susan Raff reported that the state investigates numerous similar complaints.

The state Insurance Department told Eyewitness News that Consolidated Workers Association is not licensed in the state, which is a requirement to provide health insurance.

According to state officials, the company wasn't selling health insurance, only a medical discount plan.

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