A federal jury in West Palm Beach, Florida, has convicted Cory Lloyd, president of an insurance brokerage firm from Stuart, Florida, and Steven Strong, CEO of a marketing company from Mansfield, Texas. The two were found guilty for their roles in a scheme involving fraudulent enrollments in Affordable Care Act (ACA) insurance plans. The scheme aimed to obtain over $233 million in ACA plan subsidies, with at least $180 million paid by the federal government.
According to evidence presented during the trial, Lloyd and Strong submitted false applications for individuals who did not meet income requirements for subsidized ACA plans. These subsidies are provided as tax credits paid directly to insurance companies on behalf of eligible enrollees. Lloyd received commissions from an insurance company for enrolling consumers into these plans and shared payments with Strong for consumer referrals.
“These defendants exploited a health care safety net designed for working families to carry out a $233 million scheme to defraud taxpayers,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “The defendants took advantage of vulnerable people, including people experiencing homelessness, drug addictions, and mental health disorders, in order to make millions of dollars. The Department of Justice takes such conduct seriously and will continue to hold criminals accountable who seek to steal taxpayer dollars by exploiting vulnerable people and endangering the health and safety of our communities.”
Special Agent in Charge Brett Skiles of the FBI Miami Field Office stated: “Health care fraud is nothing new to South Florida as many scammers see this as a way to earn easy, though illegal, money. What is disturbing about this investigation is that the subjects deliberately targeted the most vulnerable — low-income citizens experiencing homelessness, unemployment and even mental health and substance abuse issues. All to line their own pockets with ill-gotten gains. The investigators who unraveled this scam are to be commended for their diligence and commitment. The FBI and our partners will continue to pursue those individuals who defraud our health care system at the expense of taxpayers.”
Deputy Inspector General for Investigations Christian J. Schrank of HHS-OIG commented: “The ACA marketplace is not a playground for fraudsters. This $230 million dollar subsidies scheme was built on deception, targeting vulnerable individuals and manipulating the system for personal gain. HHS-OIG will continue to relentlessly pursue those who exploit enrollees and undermine public trust, using every tool at our disposal to prevent health care fraud.”
Special Agent in Charge Ronald A. Loecker of IRS-CI Florida Field Office added: “This was not just a financial crime — it was a moral failure. Cory Lloyd and Steven Strong deliberately targeted the homeless and mentally ill to enrich themselves, which is unconscionable. IRS-CI will continue to work with our law enforcement partners to ensure that those who exploit others and defraud the government face justice.”
During the trial it was shown that Lloyd and Strong specifically sought out vulnerable individuals facing homelessness or mental illness through "street marketers." They sometimes offered bribes or coached applicants on how to answer questions falsely in order to maximize subsidy amounts or used mismatched addresses and social security numbers on applications. Some affected consumers lost previous coverage under Medicaid or other programs due to these fraudulent enrollments.
Further evidence indicated that both men used deceptive sales tactics so that consumers would claim they intended to earn enough income for eligibility—even when stating otherwise initially—and circumvented federal verification processes by submitting applications designed for denial under Medicaid so they could then sign up these same consumers outside open enrollment periods.
Lloyd and Strong were each convicted on one count of conspiracy to commit wire fraud, three counts of wire fraud, and one count of conspiracy to defraud the United States; Strong was also convicted on two counts of money laundering. Each defendant faces significant prison time—up to 20 years per count related to wire fraud conspiracies—with sentencing scheduled for February 4, 2026.
The case was investigated by the FBI, HHS-OIG, and IRS-CI agencies.
Assistant Chief Jamie de Boer and Trial Attorney D. Keith Clouser prosecuted the case from the Justice Department’s Fraud Section.
The Health Care Fraud Strike Force Program has charged more than 5,000 defendants since its inception in 2007 across 25 federal districts; collectively these cases have involved more than $24 billion billed improperly.
More information about ongoing efforts can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
