August 19, 2025 | JacobiJournal.com – A Georgia federal judge has refused to dismiss malpractice and fiduciary duty claims against Burr & Forman LLP, keeping the law firm in the middle of a high-profile lawsuit tied to an alleged multimillion-dollar healthcare fraud scheme involving The Aliera Companies. The ruling highlights how legal professionals can become entangled in healthcare fraud disputes when their actions, advice, or oversight are alleged to have supported questionable financial practices.
At the center of the case are allegations that Burr & Forman and its partner, Jennifer Moseley, played a role in structuring business transactions that enabled Aliera’s founders to divert millions from healthcare sharing ministries. These ministries, often marketed as faith-based alternatives to traditional insurance, have drawn increasing regulatory scrutiny due to fraud risks and misuse. By leaving the malpractice and fiduciary duty claims intact, the court signaled that the intersection of law firms and healthcare fraud will continue to be a closely watched area of litigation.
Judge Denies Dismissal of Key Claims
U.S. District Judge J.P. Boulee ruled that Burr & Forman and its partner, Jennifer Moseley, must largely face claims brought by bankruptcy trustees overseeing the fallout of Aliera’s collapse. The trustees allege that the firm assisted Aliera’s founders, Tim Moses and Shelley Steele, in siphoning millions from the company through improper transactions.
Judge Boulee rejected the defense that Burr & Forman merely completed tasks within its professional engagement, emphasizing that attorneys must perform with “ordinary care, skill, and diligence.” He also noted that breach of fiduciary duty was explicitly included in the firm’s engagement letter, making dismissal inappropriate.
Limited Dismissal on Aiding and Abetting Counts
The court dismissed only two counts alleging that Burr & Forman aided and abetted a fiduciary breach. Georgia law restricts aiding and abetting claims to third parties, and the court found that Burr & Forman was not a legal “stranger” to the arrangement.
Allegations of Fraud Through Healthcare Sharing Ministries
The trustees’ lawsuit asserts that Aliera used healthcare sharing ministries (HCSMs) to sell plans that charged excessive fees while denying promised health coverage. One such partnership with Anabaptist Healthshare allegedly allowed Aliera and its subsidiary Unity Healthshare Inc. to collect millions each month.
Burr & Forman and Moseley are accused of helping the founders establish shell companies, draft questionable promissory notes, and facilitate transfers that funneled over $8 million out of the business. According to the trustees, these transfers also went toward paying Moses’ restitution obligations from a prior fraud conviction.
Broader Fallout and Pending Criminal Charges
Judge Boulee also dismissed the firm’s argument that liability should be limited to events occurring before bankruptcy. The court noted that regulatory actions, class action lawsuits, and significant financial penalties began almost immediately after Aliera launched operations.
Meanwhile, Moses and Steele face separate criminal charges in Texas for allegedly operating an unauthorized insurance business, with proceedings still ongoing.
Legal Representation
The trustees are represented by Sirianni Youtz Spoonemore Hamburger PLLC, Terry D. Jackson PC, and Mehri & Skalet PLLC. Burr & Forman is represented by King & Spalding LLP.
For readers seeking a deeper understanding of fiduciary duties in legal malpractice claims, visit the American Bar Association’s guidance on fiduciary obligations.
FAQs: Burr & Forman Healthcare Fraud Case
What is the Burr & Forman healthcare fraud case about?
The case involves allegations that Burr & Forman LLP helped the founders of The Aliera Companies embezzle millions while misleading consumers through healthcare sharing ministries.
Why did the judge allow malpractice and fiduciary duty claims to proceed?
The judge ruled that attorneys must exercise professional care and diligence, and because fiduciary duties were part of Burr & Forman’s engagement, dismissal was not appropriate.
What legal risks do law firms face in healthcare fraud cases?
Law firms can face malpractice and fiduciary duty claims if they are found to have facilitated or ignored fraudulent activities while providing legal services.
How does healthcare fraud impact consumers and the legal system?
Healthcare fraud cases often leave consumers with unpaid medical bills, denied coverage, or unexpected expenses. For the legal system, these cases increase regulatory oversight, trigger class actions, and expand liability risks for professionals tied to the fraudulent schemes.
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