The DOJ announced yesterday that two executives were convicted by a federal jury in Florida in a $233 million Affordable Care Act (ACA) enrollment fraud scheme.
Cory Lloyd, 46, of Stuart, Florida, and Steven Strong, 42, of Mansfield, Texas, were both found guilty on multiple charges related to obtaining ACA subsidies through fraudulent applications.
A Florida federal jury returned a guilty verdict on Monday against a marketing company CEO and insurance brokerage executive who were accused of submitting fraudulent enrollments to fully subsidized Affordable Care Act insurance plans to get millions in commission payments from insurers.
A jury in West Palm Beach convicted Cory Lloyd, 46, of Stuart, Florida, and Steven Strong, 42, of Mansfield, Texas, of running a fraud scheme that tried to get more than $233 million in fraudulent ACA plan subsidies, of which the government paid $180 million.
Both Lloyd and Strong were found guilty of conspiracy to commit wire fraud, wire fraud, and conspiracy to defraud the government. Strong was also found guilty on two counts of money laundering.
Prosecutors alleged that the two men attempted to enroll ineligible consumers in subsidized ACA plans by submitting fraudulent applications. They also claimed an insurer would pay Lloyd a commission and Lloyd would then pay Strong for referrals. Prosecutors also said Lloyd and Strong "targeted low-income individuals dealing with homelessness, unemployment, mental health disorders, and substance abuse," and that some did not qualify for subsidies. Those people later lost insurance coverage or Medicaid.
The DOJ issued a statement on the conviction yesterday.
President of Insurance Brokerage Firm and CEO of Marketing Company Convicted in $233M Affordable Care Act Enrollment Fraud Scheme
— CyberChick (@warriors_mom) November 17, 2025
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It read in part:
According to court documents and evidence presented at trial, Cory Lloyd, 46, of Stuart, Florida, and Steven Strong, 42, of Mansfield, Texas, engaged in an extensive fraud scheme that sought over $233 million in fraudulent ACA plan subsidies for which the federal government paid at least $180 million. ACA plans offer tax credits to eligible enrollees. These tax credits, or “subsidies,” are paid by the federal government directly to insurance companies in the form of a payment toward the applicable monthly premium. Evidence presented at trial showed that Lloyd and Strong conspired to enroll consumers in ACA plans that were fully subsidized by the federal government by submitting false and fraudulent applications for individuals whose income did not meet the minimum requirements to be eligible for the subsidies. Lloyd received commission and other payments from an insurance company in exchange for enrolling consumers in the ACA plans. In turn, Lloyd paid commissions to Strong in exchange 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.”
Acting Assistant Attorney General Matthew R. Galeotti said, "The defendants took advantage of vulnerable people, including people experiencing homelessness, drug addictions, and mental health disorders, in order to make millions of dollars."
Brett Skiles, Special Agent in Charge of the FBI Miami Field Office, called the investigation "disturbing" and said, "The investigators who unraveled this scam are to be commended for their diligence and commitment.
Department of Health and Human Services Deputy Inspector General Christian Schrank added, "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."
Ronald A. Loecker of the IRS Criminal Investigation's Florida Field Office said in a statement, "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."
Lloyd and Strong each face significant prison time. According to the DOJ, each man "faces a maximum penalty of 20 years in prison for their conviction of conspiracy to commit wire fraud, 20 years in prison for each substantive count of wire fraud, and five years in prison for conspiracy to defraud the United States." Steven Strong faces an additional maximum of 10 years in prison for each count of money laundering.
Sentencing is scheduled for February 4, 2026.
This conviction comes at a time when the ACA is a hot-button political issue, as Democrats and Republicans fight about ongoing COVID-era subsidies, the rising cost of health insurance, and the sustainability of the ACA. Democrats want to extend the COVID-era subsidies beyond the sunset date they voted for several years ago, and blame Republicans for the "impending healthcare crisis." Meanwhile, President Trump and Republicans are floating the idea of doing away with the ACA and providing subsidies directly to consumers in the form of Health Savings Accounts.
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