Bob posted on this earlier, but I wanted to add my $.02, as well.
It seems we've been down this road before, but this time with a twist:
You're forgiven if you thought "gee, musta been a heckuva subsidy," but in this case, it's simpler: the perps were passing off medical discount cards as true insurance. We've actually blogged on this practice before; back then, various state insurance departments were cracking down on these outfits. Now they've made an honest-to-goodness Federal case out of it.
Now, you're probably asking yourself: "how did the Fed's know that these were scam sites?"
Simple: They worked.
And speaking of frauds, the Feds are fairly nonplussed at pulling their own little scam, at least according to the legal eagles at Judicial Watch:
Turns out, our Betters in DC© have been buying coverage off the Capital's Small Business (SHOP) Exchange site [ed: even more evidence of their recklessness, no?]; the JW folks argue that this avenue is open only to small businesses, of which Congress isn't one. Even better, at least a few of these rocket surgeons seem to have applied, and been approved for, a subsidy.
Your tax dollars at work.