By BRENT MARTIN
St. Joseph Post
A temporary restraining order has been issued against a St. Joseph firm that federal prosecutors contend defrauded clients in the guise of a Christian medical cost-sharing program.
U.S. District Judge Greg Kays issued the restraining order against Medical Cost Sharing and its principal owners, Craig Reynolds and James McGinnis, both of St. Joseph.
Federal prosecutors contend Reynolds and McGinnis committed wire fraud by collecting monthly contributions from “like-minded” Christians and paying very little out to cover medical costs. Prosecutors allege Reynolds and McGinnis have collected $7 million from clients since 2013 and have paid out only $246,000, or 3 1/2% of the total collected. Prosecutors further allege Reynolds and McGinnis placed at least $4 million in their personal bank accounts.
Reynolds and McGinnis, according a complaint filed by the Western District of Missouri U.S. Attorney’s Office, repeatedly failed to share medical expenses and denied member claims “based on a variety of specious reasons.” At times, Medical Cost Sharing did not have enough funds to pay member claims, because the two had depleted its bank account, according to the complaint.