Class Action Filed in Calif. Over Allegedly Fraudulent Captive Reinsurance Scheme

SAN DIEGO — Three couples have filed a proposed class action in California federal court alleging they were sold “PregnancyCare” insurance policies that were supposed to cover gestational surrogacy costs but were in fact worthless and issued as part of a fraudulent captive reinsurance scheme.

In an Oct. 11 complaint filed in the U.S. District Court for the Southern District of California, plaintiffs contend they paid premiums to Omega Family Services LLC d/b/a Prime Insurance Solutions for nonexistent coverage, leaving them with thousands of dollars in unpaid medical bills.

According to the lawsuit, Brandon White founded Ambassador Group LLC d/b/a …