Betraying Faith: Missouri Christian Charity Co-Founder Sentenced in $8 MILLION Fraud Scandal
A Missouri charity co-founder is sentenced for pocketing $8 million, leaving hundreds of members without the help they were promised. 🌐 #News #StJosephMO #Missouri #Crime
ST. JOSEPH, MO – Members of a Missouri-based Christian medical charity were promised peace of mind and financial support for their healthcare costs. They were told their monthly contributions would be shared with others in the faith, helping cover medical expenses when needed. But for hundreds of trusting individuals, those promises turned out to be nothing more than a lie, as the charity’s co-founders pocketed millions meant for healthcare, leaving members without the help they had been promised.
James L. McGinnis, co-founder of a Missouri-based Christian medical charity, has been sentenced to 12 years in federal prison for his role in an $8 million fraud scheme. The U.S. Attorney’s Office for the Western District of Missouri announced the sentence on Friday, along with orders for restitution and asset forfeiture. McGinnis, 78, was found guilty of defrauding hundreds of members who believed they were contributing to a legitimate health care sharing ministry.
Fraudulent Claims and Deceptive Practices
McGinnis, along with his co-founder Craig Anthony Reynolds, used the name Medical Cost Sharing to mislead thousands of members into believing they were contributing to a nonprofit “Health Care Sharing Ministry.” The charity marketed itself as a Christian alternative to health insurance, promising members that their contributions would be used to cover medical expenses. The organization, however, failed to meet these promises. McGinnis and Reynolds collected over $8 million in member contributions between 2015 and 2022 but spent only a small portion—3.1 percent—on healthcare claims.
The charity’s website stated: “while we are not an insurance company, many think of us as a 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.”
Despite these claims, the organization did not fulfill its promises. After collecting nearly $1.2 million in 2021 and 2022, Medical Cost Sharing paid no claims at all from February 2021 through the end of 2022.
Legal Consequences and Sentencing
McGinnis pleaded guilty to conspiracy to commit wire fraud and making false statements on a tax return. He was sentenced on Thursday to 12 years in federal prison without the possibility of parole. Additionally, McGinnis has been ordered to pay restitution totaling $7,758,908 to the victims, $143,141 to the Internal Revenue Service (IRS), and $10,787 to the Missouri Department of Revenue. He must also forfeit a 2021 Ford F-250 truck as part of the sentence.
Reynolds, who served as the charity’s president and CEO, pleaded guilty to the same charges earlier and was also sentenced. Both men personally profited from the scheme, with McGinnis and Reynolds taking at least $5.1 million of the money meant for healthcare costs.
Impact on Victims and Ongoing Legal Actions
The fraud had a significant impact on the individuals who trusted Medical Cost Sharing with their contributions. Victims believed that by making monthly “contributions,” their healthcare expenses would be covered once their deductible was met. However, despite the collection of millions in contributions, the charity failed to pay any claims during the final years of operation.
Even after federal agents began investigating the organization, Medical Cost Sharing continued to attempt collecting dues from members. In December 2022, a temporary restraining order prohibited the charity, McGinnis, and Reynolds from processing any more member payments.
This case highlights the importance of scrutinizing charities, especially those promising health care services, and taking extra care to ensure that funds are being used appropriately.
RELATED TOPICS: Crime | Christian News | Missouri
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