DENVER — Colorado Attorney General John Suthers announced today that his office has filed a lawsuit against Consolidated Medical Services, LLC, a Highlands Ranch-based company, and its owner, Joseph Benedetto (DOB: 10/8/1972), on suspicion that they violated the Colorado Consumer Protection Act.
According to the complaint, filed in Denver District Court, Consolidated Medical Services recruited individuals to market “medical benefits programs,” which were advertised as valid substitutes for traditional health insurance. The company is suspected of charging its recruits a startup fee of $35 to $345 as well as a monthly “maintenance and hosting fee” of $29.95 to sell the medical benefits programs online. The company then enticed the recruits to pay hundreds and often thousands of dollars for additional marketing products and services.
According to the complaint, Consolidated Medical Services recruited 12,800 affiliates between 2008 and July 2011. Of these suspected victims, only 382 — less than 3 percent — made any money. According to the complaint, the great majority of this three percent paid out more money than they earned.