Cease and Desist Orders Issued in Alleged Unauthorized Health Insurance Scheme in California

California Insurance Commissioner Ricardo Lara has issued a Cease and Desist Order against Innovative Partners, LP, for allegedly acting as an unauthorized insurance provider in the state.

Published on July 16, 2025

California
Close-up view of the California flag waving. California is a federated state of the United States located in the South West Coast

Sacramento, CA — California Insurance Commissioner Ricardo Lara has issued a Cease and Desist Order against Innovative Partners, LP, for allegedly acting as an unauthorized insurance provider in the state. The Department of Insurance also issued 10 additional Cease and Desist Orders against related entities and individuals, both licensed and unlicensed, for their involvement in what officials described as a fraudulent health insurance operation.

According to the California Department of Insurance (CDI), Innovative Partners offered health coverage without a valid certificate of authority. The Department’s investigation, initiated after receiving consumer complaints, found that the company began marketing limited or non-existent health coverage in 2023. Victims were reportedly misled into believing they were purchasing comprehensive health plans from legitimate providers like Blue Shield or Aetna, or through Covered California, the state’s health insurance marketplace.

Instead, policyholders received health plan ID cards bearing Innovative Partners branding. These often included references to other entities such as PHCS, Group Resources, First Health Network, and Marpai Administrators LLC. Some cards also listed contact information for Teladoc Health Inc.

Consumers reported being denied benefits they believed were included in their coverage. In one instance, a consumer who thought he had enrolled in an Aetna Gold PPO plan later discovered his mental health services were not covered, resulting in over $1,700 in out-of-pocket expenses. In another case, a small business owner was left with $11,000 in emergency room charges after being told his plan would cover two ER visits per year with a $50 co-pay.

The investigation further revealed that Innovative Partners marketed the plans as a “Small Employee Benefit Plan” under the Employee Retirement Income Security Act of 1974 (ERISA). However, the CDI stated that consumers had no employment or partnership relationship with the company.

Innovative Partners is not authorized to transact insurance business in California and lacks the necessary certification from the Department of Insurance. The Department is urging any consumers who purchased plans through Innovative Partners or affiliated individuals and entities to contact its office at (714) 712-7600.

Cease and Desist Orders were served to the following:

  • Innovative Partners, LP
  • Arman Motiwalla – License #4134341
  • Amani Shokry
  • Jimmie Sutton
  • Omar Kasani
  • Group Resources
  • First Health Network
  • MultiPlan Inc.
  • PHCS
  • Marpai Administrators LLC
  • Teladoc Health Inc.

The Department stated that it will continue to investigate the matter and take necessary enforcement actions to protect consumers.

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