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In the Matter of Health Insurance Innovations, Inc., now named Benefytt Technologies, Inc., et al. Admin. Proc. File No. 3-20932

Jan. 5, 2023

On July 20, 2022, the Commission instituted and simultaneously settled cease-and-desist proceedings (the “Order”) against Health Insurance Innovations, Inc., now named Benefytt Technologies, Inc. (“HII”) and Gavin D. Southwell (“Southwell”) (collectively, the “Respondents”). In the Order, the Commission found that from March 2017 through March 2020, HII, a technology platform, billing administrator and distributors of short-term and limited health insurance products, and its CEO Southwell made a series of false and misleading statements to investors, which concealed extensive consumer complaints about products being sold through misrepresentations. In total, the Commission ordered the Respondents to pay $320,000.00 in disgorgement, $41,511.00 in prejudgment interest, and $11,750,000.00 in civil money penalties, for a collective total of $12,111,511.00, to the Commission. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalties paid, along with the disgorgement and interest paid, can be distributed to harmed investors (the “Fair Fund”). See the Commission’s Order: Release No. 33-11084.

The Fair Fund includes the $12,111,511.00 paid by the Respondents. The Fair Fund and has been deposited in an interest-bearing account at the U.S. Department of the Treasury, and any interest accrued will be added to the Fair Fund.

On December 1, 2022, the Commission issued an order appointing Miller Kaplan Arase LLP, as the Tax Administrator of the Fair Fund. See the Commission’s Order: Release No. 34-96435

For more information, please contact the Commission:

Office of Distributions

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