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CHRISTIAN BREAKING NEWS: [UPDATE] Craig Anthony Reynolds, Co-Founder of ‘Christian Health Care Sharing Ministry’, St. Joseph, MO Sentenced for 17 Years and 6 Months for $8 Million Fraud Scheme [#CraigAnthonyReynolds #ChristianHealthCareSharingMinistry]

The co-founder of a so-called Christian health care sharing ministry in St. Joseph, Mo., was sentenced in federal court today for his involvement in a $8 million wire fraud scheme that defrauded hundreds of members, as well as for making false representations on a personal tax return.

U.S. District Judge Greg Kays sentenced Craig Anthony Reynolds, 62, of St. Joseph, to 17 years and six months in federal prison without parole.

Reynolds was taken into custody during today’s hearing and will immediately begin serving his sentence.

The court also ordered Reynolds to pay $7,758,908 in restitution to the victims, $253,474 to the Internal Revenue Service, and $46,550 to the Missouri Department of Revenue.

Reynolds was also ordered by the court to forfeit $462,771 to the government, which included proceeds from the sale of a St. Joseph residence, cash representing his interest in another St. Joseph residence, the values of a Lincoln Navigator and a Harley-Davidson motorcycle, all of which will be sold, and the contents of several bank accounts.

Reynolds founded and led Medical Cost Sharing, a tax-exempt organization, from 2014 to December 2022. Reynolds pleaded guilty on November 14, 2023, to 1 count of conspiracy to commit wire fraud and 1 count of making false statements on tax returns.

In a separate but connected case, co-defendant James L. McGinnis, 77, of St. Joseph, pleaded guilty to the same charges on April 2, 2024, and is awaiting sentence.

McGinnis co-founded Medical Cost Sharing and served as its COO from 2014 until December 2022.

Reynolds and McGinnis both admitted that they and their co-conspirators used false and fraudulent claims to sell Medical Cost Sharing as a “Health Care Sharing Ministry” in order to defraud hundreds of “ministry members.”

They collected more than $8 million in member “contributions,” but only paid 3.1 percent of health care claims, allowing them to profit personally and keep the majority of the members’ contributions.

Reynolds and McGinnis earned at least $5,168,268 in member contributions from December 2015 to December 2022.

Thus, Reynolds and McGinnis profited personally from at least 64% of total member contributions.

Reynolds and McGinnis promoted Medical Cost Sharing as a “Christian Health Care Sharing Ministry” via insurance brokers, radio stations, social media, and their website.

Medical Cost Sharing’s sales brochures highlighted its 501(c)(3) tax-exempt status, distinguishing it from for-profit health insurance.

According to the Medical Cost Sharing website, “while we are not an insurance company, many think of us as Christian Health Insurance, or Christian Medical Insurance because, like conventional insurance plans, we help you pay your healthcare costs .We help you protect your family. But unlike these corporate, profit based plans, we are a healthcare sharing ministry … your healthcare costs are shared with other Christians enrolled in our medical sharing plans.”

Medical Cost Sharing offered its members that if they paid monthly “contributions,” the company would pay claims once their “personal responsibility” (deductible) was fulfilled.

Reynolds and McGinnis admitted that Medical Cost Sharing rarely paid its members’ health care claims.

Sometimes Medical Cost Sharing would pay a portion of a claim if the member files a complaint with their state attorney general and/or hires an attorney to represent them against Medical Cost Sharing.

Medical Cost Sharing did not pay any claims for over 2 years, from February 22, 2021 to December 2022, while collecting nearly $1.2 million in dues in 2021 and 2022.

On December 13, 2022, federal agents executed search warrants at the Medical Cost Sharing business location and Reynolds and McGinnis’ houses, seizing property derived from Medical Cost Sharing earnings.

Medical Cost Sharing continued to attempt to collect membership fees following the search and seizure warrants.

On December 27, 2022, the court issued a temporary restraining order prohibiting Medical Cost Sharing, Reynolds, and McGinnis from continuing to operate a fraudulent scheme and processing Medical Cost Sharing member payments, among other activities.

Reynolds also admitted that he filed a return claiming no taxable income for 2019.

Reynolds earned at least $354,292 in taxable income in 2019.

According to court records, Reynolds filed false federal and state tax returns in 2018, 2019, 2020, and 2021.

According to court records, Reynolds also defrauded the US Treasury by applying for Covid tax credits with false information.

Reynolds received $42,586 in bogus Employee Retention Credits for tax year 2021.

Assistant United States Attorneys Kathleen D. Mahoney, Patrick Daly, and John Constance handled the prosecution of this case.

The FBI and the IRS-Criminal Investigation Division looked into the matter.

FBI Website for Victims of Medical Cost Sharing Fraud

Those who believe they have been victims of this fraud and would like to get restitution for any damages incurred as a result may send information through the FBI’s MCS Victim Information Page.
https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/mcs-victim-information-page

NEWS SOURCE & LINKS:
U.S. Attorney’s Office Western District of Missouri

Craig Anthony Reynolds, ‘Christian Health Care Sharing Ministry’ | SENTENCED $8 MILLION FRAUD SCHEME | Christian Breaking News!