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October 01, 1994|From Times Staff and Wire Reports

Settlements Reached in Alleged Health Insurance Scam: Three insurance companies and about 175 brokers and agents have agreed to settlements totaling more than $7 million to be paid to victims of an alleged health insurance scam. About 10,000 consumers nationwide bought worthless health plans through Consolidated Local 867, which prosecutors have called a sham labor union. The consumers, now plaintiffs in a federal class-action lawsuit in New York, reached the settlements over the last two weeks, their attorneys said. However, the operators of the alleged scam as well as other agents and brokers that sold the policies remain defendants in the case, which is headed for trial in January. Attorneys said the victims lost an estimated $35 million.

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