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CIGNA Obtains $14,371,384.95 Judgment Against Fraudulent Health Care  Provider

Since police, prosecutors and state insurance fraud investigators are  seldom willing to arrest or prosecute insurance fraud perpetrators it is  necessary for insurers to be proactive and sue those who attempt or  succeed in defrauding insurers.  In Connecticut General Life Insurance Company and CIGNA Health And Life  Insurance Company v. Mike Ogbebor and Stafford Renal LLC, No. 3:21-cv-00954  (JAM), United States District Court, D. Connecticut (September 6, 2022)  CIGNA successfully sued a fake provider and obtained a default judgment  for almost $15 million against the corporate defendant and its alter  ego individual. FACTS  Stafford Renal LLC (Stafford) and its owner Mike Ogbebor, received  insurance payments from the plaintiffs, Connecticut General Life  Insurance Company and Cigna Health and Life Insurance Company  (collectively, \\u201cCigna\\u201d), for dialysis Stafford claims to have  administered to two Cigna plan members. Cigna alleged that Stafford was  not licensed to provide, and in fact, did not provide these dialysis  treatments.  After Cigna filed its complaint Ogbebor submitted an answer on behalf of  both defendants. The trial judge struck this answer with respect to  Stafford because Ogbebor as a non-lawyer could not represent in court a  limited liability company such as Stafford. Cigna then moved for a  default entry against Stafford, which was granted based on Stafford\\u2019s  failure to appear or respond.  As for Ogbebor, he has failed to object or respond in any way to Cigna\\u2019s  discovery requests. Ogbebor  also failed to respond to a motion to  compel discovery, despite the Court\\u2019s discovery order warning him that  such failure might result in sanctions including default judgment. Cigna  now moves for default judgment against both Stafford and Ogbebor.  DISCUSSION  When a defendant defaults, it thereby admits all well-pleaded factual  allegations contained in the complaint. The trial court found that  default judgment is the appropriate sanction in this case and that any  lesser sanction would be futile in light of Ogbebor\\u2019s willful and total  refusal to cooperate with this litigation since he was first served in  February 2022 with discovery requests concerning information in his  possession that is essential for the resolution of Cigna\\u2019s claims  against him. CONCLUSION  Judgment was entered against Mike Ogbebor and Stafford Renal LLC in the  joint and several amount of $14,371,384.95, as well as a declaratory  judgment that the plaintiffs are absolved of any liability to pay past  or future claims submitted by Stafford Renal LLC.