Two executives have been sentenced to 20 years in prison for orchestrating a large-scale fraud scheme that targeted the Affordable Care Act (ACA) program. 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, allowing them to collect millions in commissions from insurance companies.
Attorney General Pamela Bondi commented on the sentencing: “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 said: “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 engaged in fraudulent activities totaling over $233 million in sought-after ACA plan subsidies; at least $180 million was paid by the government as part of this scheme.
Lloyd and Strong specifically targeted low-income individuals facing homelessness or substance abuse issues through intermediaries known as “street marketers.” Some victims were offered bribes or misled about eligibility requirements so they would enroll in subsidized ACA plans despite not qualifying based on income levels.
Evidence showed that some affected consumers lost access to essential medical treatments due to being improperly enrolled under false pretenses instead of receiving appropriate coverage through Medicaid or other channels.
The investigation also uncovered messages between Lloyd and Strong discussing ways to maximize profits by targeting disaster shelters during hurricanes.
Both men used proceeds from their crimes on luxury purchases including waterfront property in Florida Keys, an 80-foot yacht, and high-end vehicles.
In November 2025 both were convicted on charges including conspiracy to commit wire fraud; Strong faced additional counts related to money laundering.
A third individual involved pleaded guilty earlier this year.
The case was investigated by multiple agencies including FBI; HHS-OIG; IRS-CI; prosecuted by officials within Department Of Justice’s Fraud Section along with assistance handling asset forfeiture by U.S Attorney’s Office Southern District Of Florida.
The Health Care Fraud Strike Force Program has charged more than 6,200 defendants since its inception—these cases collectively involve over $45 billion billed improperly across various healthcare providers according to information available at www.justice.gov/criminal-fraud/health-care-fraud-unit.
