Two business executives have been sentenced to 20 years in prison for orchestrating a large-scale fraud scheme targeting the Affordable Care Act (ACA). The president of an insurance brokerage firm and the CEO of a marketing company were found guilty of enrolling tens of thousands of vulnerable individuals into fully subsidized ACA plans, earning millions in commissions from insurance companies.
Attorney General Pamela Bondi commented on the case: “Preying upon medically compromised consumers to rob hundreds of millions from taxpayer-funded programs is evil and unforgivable. Fraud schemes like this rob citizens and shake faith in our institutions — today’s sentencing is the latest example of this DOJ’s commitment to fighting fraud nationwide.”
Assistant Attorney General A. Tysen Duva stated: “These defendants will rightly spend decades in prison for taking advantage of thousands of vulnerable people and stealing millions from a health care safety net designed for working families. These defendants were sophisticated, licensed insurance brokers. They had everything and intentionally took advantage of people who had nothing. The message from these sentences is simple: those who seek to line their own pockets with taxpayer dollars, victimize our most vulnerable and deplete federal programs will be held accountable.”
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida said: “These defendants didn’t just steal money — they built a $233 million fraud scheme on the backs of vulnerable people. They targeted individuals struggling with homelessness, addiction, and mental health challenges, manipulated them for profit, and jeopardized their access to legitimate medical care. In the process, the federal government paid out at least $180 million in fraudulent subsidies — money stolen from the American people and a health care safety net designed for working families. That level of calculated exploitation demands serious prison time, and today’s sentences reflect the scale and cruelty of this crime.”
FBI Director Kash Patel added: “These defendants didn’t just commit fraud; they built a business model around exploiting people at their most vulnerable. They targeted vulnerable individuals in the community, manipulated federal health programs for profit, and put victims at risk of losing critical medical care so they could cash in. Stealing hundreds of millions of taxpayer dollars while endangering lives is as callous as it gets. The FBI and our partners will continue to track down and hold accountable anyone who treats vulnerable Americans as a payday.”
Inspector General T. March Bell from HHS-OIG remarked: “These defendants designed a purposeful scheme to profit from human suffering, targeting individuals at their most vulnerable moments, solely for personal gain. Their callous greed put lives at risk, and such disregard for human dignity is unacceptable. HHS-OIG will continue to work tirelessly with our law enforcement partners to ensure that those who defraud federal health care programs and endanger public health are brought to justice.”
IRS Criminal Investigation Chief Guy Ficco also commented: “Benefit fraud against public programs isn’t just a crime — it hurts real people, especially the most vulnerable. These sentencings send a powerful message: cheating a federal program comes with serious consequences. IRS-CI and our law enforcement partners will stop at nothing to track down those who exploit these programs and bring them to justice. If you steal from the public, you will be caught — and you will pay the price.”
Court documents revealed that Cory Lloyd (47) from Stuart, Florida, and Steven Strong (43) from Mansfield, Texas orchestrated an extensive scheme seeking over $233 million in fraudulent ACA plan subsidies; at least $180 million was paid by the government as a result.
The two men targeted low-income individuals facing homelessness or struggling with substance abuse or mental illness through intermediaries known as "street marketers." Sometimes bribes were offered so that these individuals would enroll in subsidized ACA plans under false pretenses regarding income eligibility.
To maximize profits year-round rather than only during open enrollment periods, Lloyd and Strong submitted applications likely to be denied by Medicaid first—thus making those same applicants eligible for subsidized ACA plans outside normal windows.
Evidence showed both men exchanged text messages boasting about profits made through these tactics while disparaging those they enrolled.
Proceeds funded luxury purchases including waterfront property in Florida Keys, an 80-foot yacht, and expensive vehicles.
Both Lloyd and Strong were convicted on charges including conspiracy to commit wire fraud; each received 20-year sentences plus orders to pay over $180 million restitution.
A third defendant involved previously pleaded guilty on related charges.
The investigation was conducted by FBI, HHS-OIG, and IRS-CI teams; prosecution was led by Assistant Chief Jamie de Boer along with other Justice Department attorneys.
The Justice Department’s Health Care Fraud Strike Force Program has charged more than 6,200 defendants since its inception in 2007 related to fraudulent billing practices affecting both federal healthcare programs as well as private insurers.
More details about ongoing efforts can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
