A co-founder of a Missouri nonprofit was imprisoned for embezzling $8 million, depriving hundreds of members of the assistance they were promised.#Missouri #St. Joseph, Missouri #News #Crime
Missouri’s St. JosephMembers of a Christian medical charity in Missouri were assured of financial assistance for their medical expenses as well as peace of mind. They were informed that their monthly donations would be sent to fellow believers, assisting in the payment of medical bills as necessary. However, for hundreds of gullible people, those assurances proved to be a falsehood, as the co-founders of the organization embezzled millions intended for medical care, depriving members of the assistance they were promised.
James L. McGinnis, a co-founder of a Christian medical charity in Missouri, was found guilty of participating in a $8 million fraud conspiracy and was given a 12-year sentence in federal prison. The sentence and restitution and asset forfeiture orders were released by the U.S. Attorney’s Office for the Western District of Missouri on Friday. The 78-year-old McGinnis was convicted of deceiving hundreds of members who thought they were making contributions to a genuine ministry that shared health care.
Fraudulent Claims and Deceptive Practices
McGinnis and his co-founder Craig Anthony Reynolds deceived thousands of members into thinking their contributions were going to a nonprofit organization called Health Care Sharing Ministry by using the term Medical Cost Sharing. The nonprofit promised members that their donations would be used to pay for medical bills, positioning itself as a Christian substitute for health insurance. However, the organization fell short of these commitments. Between 2015 and 2022, McGinnis and Reynolds received more than $8 million in member contributions, but they only spent 3.1 percent of that amount on medical claims.
Although we are not an insurance firm, many people consider us to be Christian Health Insurance or Christian Medical Insurance since, like traditional insurance plans, we assist you in covering your medical expenses, according to the charity’s website. We assist you in safeguarding 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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