Florida Executives Sentenced for $233M ACA Fraud
Two Florida business executives have been sentenced to 20 years each in federal prison for orchestrating one of the largest Affordable Care Act (ACA) fraud schemes in U.S. history — a $233 million operation that deliberately preyed upon homeless individuals, hurricane victims, and people battling addiction and mental illness.
Who Are Cory Lloyd and Steven Strong?
Cory Lloyd, 46, president of a Florida insurance brokerage firm based in Stuart, Florida, and Steven Strong, 42, CEO of a Texas-based marketing company from Mansfield, Texas, were convicted on charges of conspiracy and fraud. Federal prosecutors proved the two men used their licensed brokerage status to systematically defraud both the federal government and thousands of vulnerable Americans.
In addition to their 20-year prison sentences, Lloyd and Strong were ordered to pay $180.6 million in restitution to their victims — a figure that reflects the devastating financial impact of their multi-year criminal enterprise.
How the ACA Fraud Scheme Operated
Lloyd and Strong built their scheme on a foundation of deception. According to the Department of Justice, the two men falsified government enrollment forms, bribed prospective enrollees, and enrolled individuals in ACA health plans without their informed consent — often knowing full well that doing so would strip those individuals of their existing Medicaid coverage.
Their fraud generated enormous personal profit. Using proceeds from the scheme, the pair purchased luxury vehicles, an 80-foot yacht, and an oceanfront home in the Florida Keys — a stark contrast to the lives of the vulnerable individuals they exploited.
Victims Targeted: Homeless, Hurricane Survivors, and Mentally Ill
Approximately 35,000 individuals were fraudulently enrolled in ACA plans as a result of the scheme. Lloyd and Strong and their network of “street marketers” deliberately targeted some of Florida’s most at-risk populations, including:
- People experiencing homelessness or chronic unemployment
- Individuals suffering from opioid addiction and other substance use disorders
- People diagnosed with serious mental health conditions
- Hurricane victims displaced from their homes and seeking emergency shelter
- Low-income individuals already enrolled in Medicaid
Text messages presented at trial revealed Strong suggesting that their marketing teams be deployed directly into Florida hurricane shelters to recruit enrollees. Lloyd responded enthusiastically, calling it “a killer idea.” Prosecutors argued these efforts were especially harmful because they disrupted existing insurance coverage and jeopardized access to life-saving treatment.
Real Harm Caused by the Fraudulent Enrollments
The fraud was not merely financial — it caused measurable, life-threatening harm to real people. When victims were enrolled in ACA plans without their knowledge or consent, many automatically lost their Medicaid coverage. For individuals relying on Medicaid for critical treatments, this had devastating consequences.
A Jacksonville-based psychiatrist who treats homeless patients testified at trial about the specific harm some of his patients suffered. One patient, described as “living in the woods behind Walmart,” suffered from schizoaffective disorder and had previously been covered under Medicaid for a $2,000 monthly injection to manage the condition. Enrollment in an ACA plan caused that individual to lose coverage entirely.
Other victims lost access to treatment for opioid use disorder, HIV and serious infectious diseases, and ongoing mental health care — interruptions that can be medically catastrophic or even fatal.
Justice Department’s Response and Sentencing
Attorney General Pam Bondi condemned the scheme in strong terms. “Preying upon medically compromised consumers to rob hundreds of millions of taxpayer-funded programs is evil and unforgivable,” she said. “Fraud schemes like this rob citizens and shake faith in our institutions.”
Assistant Attorney General A. Tysen Duva of the DOJ’s Criminal Division added: “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.”
Ongoing Federal Crackdown on Healthcare Fraud
The sentencing of Lloyd and Strong reflects a broader, aggressive DOJ effort to combat healthcare fraud nationwide. The department’s ongoing “strike force” program currently operates across 25 federal districts and has resulted in criminal charges against approximately 5,000 individuals. Federal officials signaled this enforcement momentum will continue.
