California Attorney General Rob Bonta announced a $34 million settlement resolving claims that The Aliera Companies

California Attorney General Rob Bonta announced a $34 million settlement resolving claims that The Aliera Companies, Inc. and its subsidiaries — along with Sharity Ministries, Inc., formerly known as Trinity Healthshare, Inc. — sold unauthorized, sham health insurance plans in the state.

The lawsuit, filed in January 2022, accused Aliera and Trinity of deceiving consumers by claiming Trinity was a legitimate health care sharing ministry (HCSM). HCSMs are nonprofit organizations in which members of a religious community pool funds to help pay medical bills. But Trinity, investigators found, was not a real HCSM. Instead, it was part of a for-profit operation run by Aliera that pocketed nearly 84% of member payments while routinely denying claims.

“These companies 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,” Bonta said. “It’s shameful, it’s illegal, and it has no place in California.”

“These companies 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,” Bonta said. “It’s shameful, it’s illegal, and it has no place in California.”

Under the settlement, Aliera and Trinity are permanently barred from operating, marketing, or selling health coverage of any kind in California. The $34 million penalty — though largely symbolic due to the companies’ bankruptcies — underscores the seriousness of the violations.

Both companies filed for Chapter 11 liquidation in Delaware and have ceased operations, with remaining assets being handled through liquidating trusts seeking to recover funds for former members.

The California Department of Justice continues pursuing claims against Shelley Steele, Tim Moses, and Chase Moses — the family alleged to have orchestrated the fraudulent scheme through Aliera and Trinity. Separate settlements were reached in 2023 with former Trinity executives Joseph Guarino III and William Thead III, who were each fined $1 million and banned from doing business in the state.

Bonta’s office said the settlement serves as a warning to others considering similar schemes and urged Californians to seek legitimate coverage through Covered California.

Attorney General Bonta previously issued a consumer alert warning about fake health sharing ministries that fail to cover essential benefits such as prescriptions, preexisting conditions, birth control, and mental health care.

Californians who suspect they’ve been targeted by an illegitimate HCSM can file a complaint at oag.ca.gov/report.