A Missouri healthcare cost sharing charity has been shut down by the federal government.
St. Joseph-based Medical Cost Sharing Incorporated is a Christian nonprofit with members paying premiums.
In return, the charity is supposed to cover the bulk of the costs.
But that’s allegedly not what was happening.
The Kansas City Star reports The FBI and U.S. Department of Justice accused the company of widespread fraud and money laundering, with the founders, James McGinnis and Craig Reynolds, allegedly pocketing most of the cash.
The newspaper says since the charity began in 2013, Medical Cost Sharing has collected roughly $7.5 million in membership fees, but an estimated $246,000 of money collected actually went toward sharing the cost of health care bills.
The federal agencies have seized the assets of McGinnis and Reynolds, including their St. Joseph homes.
McGinnis and Reynolds have not been criminally charged and they have denied committing fraud.