ATTORNEY GENERAL BONTA SECURES SETTLEMENT WITH REMAINING DEFENDANTS IN SHAM HEALTH COVERAGE CASE - Insurance News | InsuranceNewsNet

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July 10, 2026 Newswires
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ATTORNEY GENERAL BONTA SECURES SETTLEMENT WITH REMAINING DEFENDANTS IN SHAM HEALTH COVERAGE CASE

States News Service

The following information was released by the office of the California Attorney General:

California Attorney General Rob Bonta today announced that the Los Angeles Superior Court approved a settlement with Shelley Steele, Timothy Candace "Tim" Moses, Chase Moses (collectively, the Moses family), and First Call Telemedicine, LLC (First Call), the remaining defendants in a matter involving the alleged sale of sham health coverage to California consumers.

The case began in January 2022, when Attorney General Bonta filed a lawsuit against The Aliera Companies, Inc. (Aliera), Trinity HealthShare (Trinity), and other defendants, including those who are the subject of today's settlement. The lawsuit alleged that the Moses family created and controlled Trinity, falsely presenting it as a legitimate health care sharing ministry (HCSM), and used Aliera, a for-profit company they also controlled, to market and administer the health plans to consumers. HCSMs are 501(c)(3) nonprofit organizations historically comprised of members of a particular religious community who contribute money to share catastrophic or unexpected healthcare costs. HCSMs are often marketed as lower-cost alternatives to traditional health insurance, but they generally do not pay for all essential health benefits such as prescriptions, preexisting conditions, birth control, or mental healthcare, and do not guarantee payment for medical expenses. According to the complaint, Trinity was not a legitimate HCSM, and Aliera retained a significant portion of members' contributions rather than using those funds to pay healthcare costs, leaving many consumers with unpaid medical bills. The lawsuit also alleged that, after the collapse of Aliera, Shelley Steele continued selling health plans in California through First Call without the required state authorization and directed millions of dollars from Trinity membership funds to First Call. In 2025, Attorney General Bonta reached a settlement with Aliera, Trinity, and additional defendants. Today's settlement resolves the matter with the remaining defendants: the Moses family and First Call.

"Californians deserve honest information when making decisions about their health coverage," said Attorney General Bonta . "More than 14,000 Californians were allegedly misled into paying for health plans that did not provide the protection they expected, while those behind the scheme profited from their trust. After holding other defendants accountable last year, this settlement finishes the job by securing penalties against the remaining defendants and barring them from doing business in California."

Consumers were allegedly led to believe their monthly payments were being used to pay healthcare expenses, but Aliera retained nearly 84% of those funds and routinely rejected requests for payment of medical expenses. Under the settlement:

Shelley Steele, Tim Moses, and First Call Telemedicine are permanently barred from conducting business in California, directing business toward California residents, serving in leadership positions at companies doing business in California, or owning more than a 25% interest in businesses operating in California.

Chase Moses is prohibited from conducting business in California for 10 years and is permanently barred from marketing, selling, administering, or otherwise operating any HCSM in California.

These remaining defendants must pay more than $5.1 million in civil penalties. Portions of those penalties are suspended based on the defendants' sworn financial disclosures and continued compliance with the judgment and may be reinstated if the defendants are found to have materially misrepresented their financial condition or violate the settlement.

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