Healthcare Sharing Fraud

[Lee B]

Copied from IRS CI:

"Craig Anthony Reynolds, co-founder of a supposed Christian health-sharing ministry in St. Joseph, Missouri, was sentenced to 17 years and six months in federal prison for his role in an $8 million wire fraud scheme and making false statements on his tax return. He was also ordered to pay over $8 million in restitution to his victims and the IRS.

Reynolds and his co-conspirator, James McGinnis, marketed their organization as a healthcare sharing ministry but paid only 3.1% of the $8 million they collected in member contributions. From 2014 to December 2022, Reynolds and McGinnis mislead their members through false promises and fraudulent marketing and used the contributions for their personal profit.

Both men pleaded guilty to wire fraud and making false tax statements. Reynold’s fraudulent activities also included filing false tax returns and improperly claiming COVID tax credits.

This case was investigated by the IRS CI St. Louis Field Office."

All fraud is bad, but this kind is especially disgusting!