James Michael Kafes, a 57-year-old Carmel resident, pleaded guilty last Thursday in federal court in New Orleans to conspiring to obstruct a federal grand jury investigation tied to a multimillion-dollar medical-reimbursement investment scheme. Prosecutors say Kafes and an associate pitched a "New 105 Plan" as the next generation of the already discredited Classic 105 program and solicited money from investor-owners. In entering his plea, Kafes admitted he pushed at least one investor not to cooperate with investigators and that he lied under oath, with sentencing currently set for Aug. 27, 2026.
According to a press release by the U.S. Attorney's Office, Kafes and co-defendant Josiah David "agreed, and arranged, for David to withhold material responsive to a federal grand jury" and to steer an owner-investor away from meeting with federal agents. The same filing states that Kafes "testified falsely while under oath" before the grand jury on March 27, 2025, and that his guilty plea resolves Count 8 of an eight-count indictment. Prosecutors say the obstruction grew out of fundraising and marketing efforts tied to a proposed successor to The Total Financial Group's Classic 105 program.
Prosecutors say investor-owners put more than $4,000,000 into Premier and related entities and that over $550,000 of that cash was routed to the former Total Financial Group owner in more than 120 separate transactions, according to reporting by Daily Voice Carmel. Kafes was listed as president of The Premier Healthcare Solution, while David handled most of the plan's development work and investor outreach, prosecutors say. Despite pitches that the New 105 Plan had real funding, patents and signoff from law firms, it never actually launched.
A successor to a discredited program
The New 105 Plan was marketed as a reboot of Classic 105, the medical reimbursement account program created by The Total Financial Group that federal authorities shut down after 2017 raids. Reporting at the time and later prosecutions found that Classic 105 pulled in tens of millions of dollars from employers and employees but failed to secure the promised loans and insurance policies, leaving participants exposed to tax issues and gaps in benefits. Coverage of that earlier case and subsequent guilty pleas was detailed by outlets including Insurance Journal and in government filings.
What he faces
Under the plea agreement, Kafes faces up to five years in federal prison, a fine that could reach $250,000, up to three years of supervised release, and mandatory special assessment fees, according to the U.S. Attorney's Office. Sentencing is scheduled for Aug. 27, 2026, and the trial of Kafes's co-defendants is set to start on June 8, 2026, according to the same release. Assistant U.S. Attorney Jordan Ginsberg is leading the prosecution, and prosecutors have credited the Department of Labor and the FBI with providing investigative support.
What to watch next
Investors approached by Premier may still have civil avenues to explore while the criminal cases move forward, and filings from the Classic 105 litigation offer a ready-made record for anyone weighing potential claims. For a deeper look at the original indictment and earlier reporting on the case, see this summary of the indictment, which recaps the charges and outlines the allegations against Josiah David and Kafes.
