Did they pay up

Did they pay up or slip the noose?

This from an August 2003 bulletin from the Social Security Administration …

Penalty Upheld Against United Seniors Association, Inc. [aka USANext] for Misleading Advertising

Judge Denies Appeal of $554,196 Civil Monetary Penalty

On August 8, a Department of Health and Human Services (HHS) Appeals Board Administrative Law Judge (ALJ) issued a ruling upholding the imposition of a $554,196 civil monetary penalty against the United Seniors Association, Inc. (USA Inc.). The ALJ found that USA Inc. violated Section 1140 of the Social Security Act, which protects Social Security program words and symbols from being used in a misleading manner. Over the course of several years, USA Inc. mailed solicitations to senior citizens in envelopes that appeared to be from, approved, endorsed or authorized by SSA. USA Inc. targeted these solicitations to senior citizens with envelopes that included such terminology as “SOCIAL SECURITY ALERT” in prominent, red type. USA Inc. consistently refused to cooperate with OIG’s compliance efforts over the course of 5 years. Therefore, OCIG proposed the penalty, and the parties had a full evidentiary hearing in April 2003. The ALJ’s August 8th ruling found that: USA, Inc. had “deliberately contravened the law,” the $554,196 penalty was reasonable, and USA’s envelopes created a “serious threat to the ability of the Social Security Administration to communicate freely with the public.” USA Inc. has the right to appeal the ALJ’s decision to the full HHS Departmental Appeals Board.

First-class outfit that Charlie Jarvis is running<$NoAd$>.

(ed.note: Thanks to TPM Reader XM.)