Attorney General Bonta Reaches Settlement with Companies Accused of Selling Sham Health Plans to Californians

Settlement bars companies from doing business in California 

OAKLAND — California Attorney General Rob Bonta today announced a settlement resolving claims that The Aliera Companies, Inc., and its subsidiaries, (collectively, Aliera) as well as Sharity Ministries, Inc., formerly known as Trinity Healthshare, Inc. (Trinity), violated state law by creating, operating, and selling sham health insurance in California. In January 2022, Attorney General Bonta filed a lawsuit against Aliera and Trinity, alleging that they misrepresented Trinity as a health care sharing ministry (HCSM). HCSMs are 501(c)(3) nonprofit corporations historically comprised of members of a particular religious community, who contribute money to a shared pool with the understanding that the money would pay for catastrophic or surprise healthcare costs pursuant to the members’ shared religious tenets. However, Trinity was never an HCSM and Trinity plans were instead unauthorized health plans that Aliera — a for-profit company, not a 501(c)(3) nonprofit corporation as required under federal law — operated and sold while ignoring vital consumer protections that legitimate health plans must follow. Rather than paying its members’ healthcare costs, the companies regularly declined claims and retained nearly 84% of its members’ contributions. Today’s settlement bars Aliera and Trinity from operating in California and includes a penalty of $34 million for violations of law. Given the entities' pending bankruptcy proceedings and lack of funds, the penalty is symbolic, but necessary to highlight the seriousness of the misconduct to others who might consider similar fraudulent schemes.

“Aliera and Trinity tricked over 14,000 Californians into thinking that they were purchasing a legitimate health plan, all while collecting tens of millions of dollars in monthly premiums. In reality, bad actors operating Aliera and Trinity were lining their own pockets. It’s shameful, it’s illegal, and it has no place in California,” said Attorney General Bonta. “Though Aliera and Trinity no longer do business in our state, the settlement we reached sends an important message: If you mislead consumers into purchasing sham health insurance, the California Department of Justice will hold you accountable. We remain committed to ensuring that all who participated in this unlawful scheme similarly answer for their actions. Lastly, to my fellow Californians: Please do your research when seeking to obtain health insurance and first consider applying for affordable, reliable coverage through Covered California.”

Shelley Steele, her husband, Tim Moses, and their son, Chase Moses (collectively, the Moses family), allegedly used Trinity and Aliera to sell sham health insurance. The Attorney General’s claims against the Moses family, also set forth in the January 2022 complaint, are still pending in the Los Angeles Superior Court. In addition, in June 2023, the Attorney General reached settlements with Joseph Guarino III, the former President for Trinity, and William Thead III, the former Chief Executive Officer for Trinity. Under the terms of the settlements, which can be found here for Guarino and here for Thead, both were prohibited from conducting any business in California and were required to provide assistance in the ongoing litigation. The settlements also imposed a $1,000,00 penalty on each defendant. Guarino and Thead were recruited by the Moses family. 

Trinity and Aliera have entered into Chapter 11 liquidation bankruptcies in Delaware. Through the bankruptcies, Trinity and Aliera ceased their operations, liquidated their assets, and continue to operate only as liquidating trusts tasked with recovering funds for former members through litigation against Aliera insiders, and other professionals who aided Aliera and Trinity’s unlawful activities.

As part of today’s settlement, Trinity and Aliera are: 

• Prohibited from engaging in any HCSM marketing, sales, or other operations in California or aimed at any California resident, presently or at any time in the future.
• Prohibited from engaging in any acts or practices that violate California’s Unfair Competition Law and False Advertising Law.  

In April 2021, after receiving multiple complaints from consumers alleging that their HCSM plans refused to cover treatments and pay their medical bills, Attorney General Bonta issued a consumer alert, warning Californians about illegitimate HCSMs. Unlike plans through the Covered California marketplace, HCSMs do not guarantee payment for covered services and fail to cover essential health benefits, like prescriptions, preexisting conditions, birth control, and mental health care. If you believe you have been the victim or target of suspicious marketing by an HCSM, please file a complaint at ‪oag.ca.gov/report. 

A copy of the settlements can be found here and here.