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Home » American Airlines » How A Father-Son Team Exploited American Airlines To Scam Millions
American Airlines

How A Father-Son Team Exploited American Airlines To Scam Millions

Matthew Klint Posted onAugust 17, 2019August 18, 2019 23 Comments

American Airlines Hearing Aid Scam

A father-son team face a combined 15 years in federal prison after being convicted of fraud and identity theft in a scheme that targeted American Airlines employees.

Terry Lynn Anderson, 69, and his son Rocky Freeland Anderson, 38, had quite a scheme going. The Dallas pair were in the hearing aid business and would submit false claims on behalf (but without knowledge of) American Airlines employees, reaping the gains of insurance reimbursement. In most cases, the hearing aids were not needed. In many cases, the hearing aids were not even delivered.

Short, ineffectual tests, lasting less than five minutes, were administered in AA break rooms at Dallas Fort Worth International Airport (DFW). Employees were lured to these tests by free gift cards or premium sunglasses. Claims were then submitted to Blue Cross and Blue Shield of Texas, the primary health care provider for AA employees.

Both men were convicted of health care-related fraud and aggravated identity theft.

Terry Anderson was sentenced to eight years in prison and must repay $13.7MN to Blue Cross and Blue Shield of Texas. His 300-acre ranch and $3.1MN in liquid assets were also seized. Rocky Anderson was sentenced to seven years and must repay back more than $8.4MN.

U.S. Attorney Erin Nealy Cox told The Dallas Morning News:

In flagrant disregard for the law, these defendants submitted claims for equipment they knew patients neither needed nor wanted, just to line their own pockets. This sort of fraud impacts healthcare costs for patients who actually need coverage, and we will continue to prioritize these cases.

CONCLUSION

What a scam…and so seemingly harmless too. Free ear test? Sure. Oh, good…my ears are fine. By misappropriating their identities and using false addresses, the Anderson team was able to slip under the radar for many years.

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About Author

Matthew Klint

Matthew is an avid traveler who calls Los Angeles home. Each year he travels more than 200,000 miles by air and has visited more than 135 countries. Working both in the aviation industry and as a travel consultant, Matthew has been featured in major media outlets around the world and uses his Live and Let's Fly blog to share the latest news in the airline industry, commentary on frequent flyer programs, and detailed reports of his worldwide travel.

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23 Comments

  1. Ronaldo Reply
    August 17, 2019 at 12:15 pm

    This was not an “American airlines heading aid scam.” This was simple insurance fraud. That fact that – in this case – AA employees were targeted is immaterial. I suspect that other employee groups were targeted in other/previous variants (most scammers operate for years before they’re finally caught). Seems like this is a bit of a stretch to include this content on a miles-and-points blog. Just sayin’.

    • Matthew Reply
      August 17, 2019 at 1:09 pm

      Sorry, this was very much linked to American Airlines and thus becomes related to the travel under my “Law and Travel” section.

      • SanibelSweetie Reply
        August 17, 2019 at 2:52 pm

        My question is WHO in AA management allowed them onto corporate property to do this in the first place???? Follow the money.

        • Vortilon Reply
          August 19, 2019 at 1:47 am

          There was one person in particular who was the pied piper in this case of recruitment of AMTs. Literally held what we all thought were sanctioned company type meetings in breakrooms. This person was well liked, and trusted. There was no reason to suspect her motive was for anything other than convincing enough employees to get their ears checked for free hearing aids. Then if enough of us had to get them, she could get free hearing aids for her poor Daddy. I find it kind of amazing that this person came out of this whole process unscathed.

    • Jonhanthan Mannhatan Reply
      August 18, 2019 at 3:38 am

      Airlines employees treat thier customers so badly , I personally don’t care that were scammed , for a change

      • Kathy Reply
        August 18, 2019 at 4:15 am

        But the airlines didn’t get hurt, it was the insurance company

  2. Debit Reply
    August 17, 2019 at 12:43 pm

    I bet they probably call themselves capitalists and look down on socialists.

    There should be special punishment for these hypocritical capitalists. Torture before a prison sentence.

    • Debit1 Reply
      August 17, 2019 at 9:58 pm

      Don’t know what craziness to say in favor of socialism? Go to Cuba and be happy.

      • MisterM Reply
        August 17, 2019 at 11:45 pm

        I’m sure you’ll refuse your SS and VA bennies then? Socialist programs thru and thru…

        • Mark Reply
          August 20, 2019 at 3:33 pm

          I earned my VA benefits, and pay into (against my will) SS. I would rather have been allowed to invest my own money into a mutual fund instead of SS.

          Taking money from people that earned it, to give it to those that refuse to work for it’s Socialism…

    • Sarah Needham Reply
      August 18, 2019 at 9:14 am

      Keep it up “Debit” – you’ll get banned from this blog too.

    • William Reply
      August 19, 2019 at 1:27 am

      They should look down socialist I mean really. Who wants that failed system in the United Stares?

      • Aaron Reply
        August 19, 2019 at 4:51 am

        Yeah, they should emulate the socialism of the Nordic European countries.

  3. SadStateofOurNation Reply
    August 17, 2019 at 1:07 pm

    Definitely two free-enterprise, flag-loving, stand-up-for-the-anthem patriots, applying their hero trump’s proven business model.

    Good ol’ midwest and family values.

    republican presidential material for sure.

    • Scarlett Lindell Reply
      August 17, 2019 at 9:21 pm

      Oh..I failed to read that the 2 were Stand up Trump supporters. [Profanity redacted by admin]

    • Scarlett Lindell Reply
      August 17, 2019 at 9:25 pm

      It is people like you that give any political party a bad name.
      You most like stand with the Dirty Democrats who is using race baiting.. and stand on the far right.
      You’re discussing and you are unamerican. You probably sit when our national anthem is being played.

      • Ben Reply
        August 18, 2019 at 7:02 am

        Freedom of speech. Everyone has the right to sit. Whether for political or religious reasons.

  4. derek Reply
    August 17, 2019 at 1:33 pm

    Very odd. For most people, hearing aids are not covered by insurance. They are not covered by Medicare. Maybe AA’s coverage was different and the fraudsters discovered that?

    Hearing aids are a very complex area. Very easy for people to sell very expensive hearing aids. On the other hand, a really good audiologist does tailor the hearing aids, boosting certain frequencies, having the patient try them out, re-adjust, etc.

    • Bill Reply
      August 17, 2019 at 6:32 pm

      They are criminals. Stop acting like left wing liberals are so perfect. And they probably voted for Hillary

  5. Brian G. Reply
    August 17, 2019 at 4:48 pm

    I believe AA is self-insured for their health insurance (like many large companies). Blue Cross and Blue Shield is just paid to process claims the costs are billed to the company. So this scam would have impacted AA directly.

  6. Stuart Reply
    August 17, 2019 at 5:54 pm

    They should at least have fun in court and continously respond to the prosecuting attorney with, “I’m sorry, I didn’t hear the question.”

    • Carolina D. Reply
      August 18, 2019 at 6:53 am

      Interesting article! (You might want to correct that typo at the beginning of the article that says “false clams” instead of claims)

  7. James Reply
    August 17, 2019 at 11:19 pm

    And why is the insurance company didn’t double checked the claim? An insider maybe?

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