ST. PAUL — The Minnesota Department of Commerce has fined a company and its owner $150,000 after investigators found they repeatedly misrepresented health insurance coverage to Minnesota consumers.

Commerce began looking into Seguro Medico and its owner, Arthur Walsh, after receiving complaints from Minnesotans who believed they were purchasing comprehensive health insurance. Instead, they discovered the plans provided only limited benefits and did not cover a majority of their medical, dental, or prescription drug costs.

Commerce's investigation found that while licensed to do business in Minnesota, Walsh and Seguro Medico:

• Repeatedly violated Minnesota insurance laws, including misrepresenting insurance coverage to Minnesota consumers.
• Failed to report regulatory actions against their licenses in other jurisdictions.
• Accepted insurance business from unlicensed people.
• Conducted business under an unregistered, assumed name.
• Failed to respond to information requests.

"The evidence our investigators uncovered showed a pattern of conduct that appears to have deliberately misled Minnesota consumers," said Sara Payne, Commerce’s assistant commissioner overseeing the agency’s Enforcement Division. "When companies break the law and take advantage of consumers, Commerce will hold them accountable."

Seguro Medico’s Minnesota insurance producer license has been inactive since September 2024, and Walsh’s Minnesota insurance producer license has been inactive since February 2025.

"Health insurance is something families rely on during some of the most difficult moments in their lives," said Commerce Commissioner Grace Arnold. "When consumers believe they're protected only to discover their coverage doesn't match what they were promised, the financial consequences can be devastating. Commerce will continue investigating and taking action against those who violate Minnesota law and undermine trust in our insurance marketplace."

A 2025 federal indictment alleged that between 2018 and 2022 Walsh and Seguro Medico, among others, repeatedly deceived customers, used unlicensed agents to sell insurance products, and committed wire fraud as part of what prosecutors allege was a bait-and-switch scheme affecting consumers across the country.

Walsh pleaded guilty June 5 in federal court to conspiracy and wire fraud charges in that case.

While Walsh and two other defendants pleaded guilty, federal proceedings continue against other defendants named in the case. Commerce's enforcement order is available on the department's website.

Consumers who believe they were affected by Seguro Medico or have concerns about an insurance product can file a complaint online on the Minnesota Department of Commerce’s website or email consumer.protection@state.mn.us.

The Department of Commerce recently issued a consumer alert about two different companies — Innovative Partners and American Collective — selling deceptive health plans. The Federal Trade Commission began mailing notices to affected consumers June 11. Consumers who believe they were affected or have questions can learn more at: https://www.innovativereceiver.com/.

The Minnesota Department of Commerce encourages Minnesotans to remember three simple steps to help avoid becoming a victim of fraud:

1. Pause. Scammers create a sense of urgency to pressure people into making quick decisions. If someone demands immediate action, payment or personal information, stop and take a moment to think before responding.
2. Verify. Don't rely on the phone number, email or website provided in an unexpected message. Instead, contact the organization directly using a trusted phone number or official website you find yourself.
3. Report. If you believe you've been targeted by a scam, report it to your financial institution, local law enforcement and the appropriate state or federal agencies. Reporting fraud can help protect your finances and prevent others from becoming victims.

The Minnesota Department of Commerce is here to help. Minnesota consumers and businesses can verify whether an insurance agent or company is licensed to do business in Minnesota using Commerce’s License Lookup. Past Commerce Actions and Regulatory Documents can also be viewed online.

Connect with the Minnesota Commerce Department
Get updates and news from the Minnesota Department of Commerce by following Commerce at mn.gov/commerce or @MNCommerce on social media.

Contact
Jen Longaecker | Media Relations and Public Affairs Director
Minnesota Department of Commerce
news.commerce@state.mn.us