Opening Arguments OA516: We Turned Down Ads for a Scam Company Called CrowdHealth. Other Shows May Not. Send Them This!
We bring you a somewhat unusual rapid-response Friday episode in which we break down a new startup company, CrowdHealth, Inc., that is apparently engaged in a mass ad buy across the kinds of podcasts you likely listen to. This means that within a few weeks, you'll probably be hearing all sorts of paid testimonials for a product that does not exist right now and bears all the hallmarks of a classic (legal) scam.
This company is funded with $6 million -- some (most?) of which will be spent on the advertising blitz we refused to be a part of. Would you trust an insurance company with just $6 million in reserves? (No.) Would you trust an insurance company that offered contradictory promises? (No.) Does it make any sense to pay an underfunded entity for the right to pay your own medical bills? (No.)
We explain how this is almost certainly someone who is very familiar with the kinds of Christian Health Share Ministry scams we debunked in Episode 497 and is trying to replicate that -- only worse. Listen and find out why.
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This episode relied upon the following resources:
Links:
- Websites: crowdhealth.com goes nowhere; crowdhealth.org is an unrelated company selling KN95 masks and other COVID supplies; this product is at the (unfinished) website joincrowdhealth.com.
- You can read the two-page flyer CrowdHealth sent out here.
- We explained why Christian Health Sharing Ministries are a scam back in Episode 497.
- You can search for CrowdHealth, Inc., a Texas corporation organized on April 19, 2021, on the Texas Corporations website's search page (it will pull up in a separate window).
- Here is a link to CrowdHealth's SEC Form D filing showing it raised $6,025,800 from 23 angel investors; that story was covered in the May 10, 2021 issue of the Austin Business Journal.
- And if you want to know more about CrowdHealth's founder, CEO, and (possibly?) it's only shareholder, Andy Schoonover, you can check out: a) Andy's LinkedIn page; b) his LinkedIn post soliciting doctors to share pricing information and promising "a bunch of uninsured folks who want to pay you quickly and $$ directly"; c) his stupid unfunny TikTok thing he shared on LinkedIn; d) his Twitter page; and e) his bio at Lion Venture Partners.
- Legal documents: IRS Publication 16-0051; 26 U.S.C. § 213; and 26 U.S.C § 5000A
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