KANSAS CITY, MO – Craig Anthony Reynolds, 62, of St. Joseph, Missouri, is trading his pious facade for a prison cell after being sentenced to 17 years and six months in federal prison today for orchestrating an $8 million wire fraud scheme. Reynolds, the co-founder of the so-called Christian health care sharing ministry, Medical Cost Sharing, bilked hundreds of members out of their hard-earned money, lining his own pockets while leaving families vulnerable and without healthcare coverage.
U.S. District Judge Greg Kays didn’t show Reynolds any mercy, ordering the full 17-year sentence without parole. The judge also slapped Reynolds with a hefty restitution order totaling $7,758,908 to the victims, $253,474 to the IRS, and another $46,550 to the Missouri Department of Revenue. Reynolds was immediately taken into custody. The government will also seize $462,771 in assets, including the proceeds from the sale of his St. Joseph residence, cash from another property, his Lincoln Navigator, a Harley-Davidson motorcycle, and funds from multiple bank accounts.
Reynolds ran Medical Cost Sharing as president and CEO from 2014 until December 2022, peddling it as a legitimate alternative to health insurance. He pleaded guilty on November 14, 2023, to one count of conspiracy to commit wire fraud and one count of making false statements on a tax return. His partner in crime, James L. McGinnis, 77, of St. Joseph, has also admitted guilt to the same charges and awaits sentencing. McGinnis served as the organization’s chief operating officer during the same period.
The pair preyed on vulnerable individuals, falsely promising healthcare coverage through their “Health Care Sharing Ministry.” They raked in over $8 million in member “contributions” but only paid out a paltry 3.1 percent in actual healthcare claims. Reynolds and McGinnis siphoned off at least $5,168,268 for themselves – a staggering 64 percent of all contributions. They marketed their sham organization through insurance brokers, radio, social media, and a deceptively worded website, emphasizing its 501(c)(3) tax-exempt status and falsely claiming to offer “Christian Health Insurance.”
Members were led to believe that Medical Cost Sharing would cover their healthcare costs after meeting a deductible. In reality, claims were routinely ignored. The ministry went nearly two years – from February 22, 2021, to December 2022 – without paying a single claim, despite collecting almost $1.2 million in dues during that period. Payments were occasionally made only after members filed complaints with state attorneys general or hired lawyers to force their hand. The scheme was finally exposed after federal agents executed search warrants on the business and the residences of both Reynolds and McGinnis on December 13, 2022.
This wasn’t a charitable ministry; it was a calculated fraud. Reynolds and McGinnis exploited the faith and trust of their members for personal enrichment, leaving a trail of financial ruin and broken promises. The Grimy Times will continue to follow this case and report on the sentencing of James McGinnis, ensuring that those who prey on the vulnerable face justice.”
RELATED: St. Joseph ‘Ministry’ Boss Gets 17 Years for $8M Fraud
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Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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