The founder of a Missouri-based Christian healthcare sharing ministry pleaded guilty to his role in a $8 million scheme that cheated hundreds of the ministry's members.
Craig Reynolds, 61, of St. Joseph, was the founder of Medical Cost Sharing and served as its CEO from 2014 through December 2022, according to a Nov. 14 Justice Department news release. He admitted to making false and fraudulent promises to market the company as a healthcare sharing ministry to defraud members so he and his co-conspirators could profit.
The company paid only $245,982 of the more than $8 million it collected, and the former figure includes payments to members who filed complaints with their state attorney general and/or hired legal counsel to represent them against Medical Cost Sharing, according to the release.
Mr. Reynolds pleaded guilty to wire fraud conspiracy and making false statements on a personal tax return. Under the terms of the agreement, he must forfeit his gain from Medical Cost Sharing as well as any property obtained from his criminal activity, including two residences in St. Joseph, the contents of his bank account and a motorcycle. He must also pay $167,799 in restitution to the government. He faces up to 23 years in prison.