The co-founder of a Christian health care sharing ministry was sentenced to 17 years and six months in federal prison for his role in an $8 million wire fraud conspiracy and making false statements on a personal tax return.
“CAR” 62, of St. Joseph, Missouri, was also ordered to pay $8.06 million in restitution, including $253,474 to the IRS and $46,550 to the Missouri Department of Revenue.
“CAR” led Medical Cost Sharing as its president and CEO from 2014 through 2022.
He pleaded guilty in November 2023 to conspiracy to commit wire fraud and making false statements on a tax return.
“CAR” and co-defendant “JLM” 77, who also pleaded guilty to the same charges, used fraudulent promises to market Medical Cost Sharing as a “Health Care Sharing Ministry,” defrauding hundreds of members. They collected over $8 million in contributions but paid only 3.1 percent in health care claims, pocketing at least $5.17 million.
The fraudulent scheme involved marketing Medical Cost Sharing as a Christian alternative to health insurance, promising to pay claims after members met their deductible. In reality, the organization rarely paid claims.