Memphis attorneys to repay thousands taken from consumers - Action News 5 - Memphis, Tennessee

Memphis attorneys to repay thousands taken from consumers

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MEMPHIS, TN -

(WMC-TV) - Three Memphis attorneys face a several hundred thousand dollar fine amid accusations of a health insurance scam.

Mike Marshall, a shareholder at Evans Petree Law Firm, said the company is doing an internal investigation.  At least one of the attorneys implicated is no longer with the firm.

Russell T. Hensley and Theodore T. Kitai are still working with the firm.  The third attorney involved, William L. Hendricks, is no longer with the firm.  The company would not say whether or not that has anything to do with this incident.

Evans Petree has been found in contempt of court and ordered to repay $670,000 allegedly taken from consumers in a health insurance scam.

The lawyers represented two Springfield, Tennessee companies that were closed by the state Department of Commerce and Insurance in 2010.  They were accused of selling bogus health insurance and leaving customers with unpaid claims.

The lawyers, Evans Petree, and a Springfield businessman will be liable for the fine and an undetermined amount of legal fees.

When Action News 5 spoke to one of the partners at Evans Petree, he said he could not comment on the specific allegations because of the ongoing internal investigation.  He also said they are working on a resolution with the state to make sure everyone is treated equitably.

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