Two executives just got 20 years in prison for running the largest ACA fraud scheme ever prosecuted, stealing $233 million meant for working families by preying on the homeless, mentally ill, and hurricane victims.
Quick Take
- Cory Lloyd and Steven Strong orchestrated a years-long scheme enrolling 35,000 ineligible people into fully subsidized Affordable Care Act plans to pocket over $233 million in commissions
- They deliberately targeted society’s most vulnerable: homeless individuals, people with mental illness, those struggling with addiction, and hurricane victims who couldn’t verify their income
- The federal government paid at least $180 million in subsidies for fraudulent enrollments while victims lost access to Medicaid and critical medical treatment
- Both men were sentenced February 18, 2026, to 20 years in prison and ordered to pay $180.6 million in restitution
How Licensed Brokers Weaponized a Safety Net
Lloyd, president of a Florida insurance brokerage, and Strong, CEO of a Texas marketing company, discovered a vulnerability in the ACA system designed to help working families afford health coverage. They exploited income verification gaps during open enrollment periods, falsifying applications by inflating earnings for people with virtually no income. Their operation was systematic and cruel: they used scripted lies, intentionally submitted Medicaid applications they knew would be denied to steer victims toward ACA plans, and collected commissions on each fraudulent enrollment.
What made this scheme particularly disturbing was the deliberate targeting. Lloyd and Strong didn’t randomly defraud the system—they hunted for people least able to protect themselves. Jacksonville psychiatrists testified that homeless patients lost coverage for critical treatment like schizoaffective disorder medications. People living in woods, shelters, and post-hurricane displacement camps became profit centers. These weren’t sophisticated criminals exploiting loopholes; they were licensed professionals weaponizing their expertise against the defenseless.
The Money Trail Leads to Yachts and Mansions
The pair didn’t hide their proceeds quietly. Luxury yachts, high-end homes, and extravagant lifestyles funded by stolen subsidies painted a portrait of greed disconnected from consequences. Lloyd paid Strong referral commissions, creating a partnership where both profited from victimization. Over years, they enrolled approximately 35,000 ineligible individuals, systematically draining federal resources meant for legitimate beneficiaries.
Federal investigators from the FBI, IRS, and DOJ’s Health Care Fraud Strike Force eventually untangled the scheme. A jury convicted both men in November 2025 of conspiracy, fraud, and money laundering. The scale was unprecedented—the largest ACA enrollment fraud prosecution ever brought. On February 18, 2026, they received 20-year sentences, substantial prison time reflecting the severity of their crimes against vulnerable populations.
The Collateral Damage Nobody Planned For
Beyond the $180 million in fraudulent subsidies paid, the real cost landed on 35,000 people who lost medical coverage they never actually had. Homeless individuals dependent on mental health services found themselves without access. People managing addiction lost treatment continuity. Hurricane victims, already displaced and traumatized, faced additional disruption. The scheme didn’t just steal money—it sabotaged access to the safety net for people who needed it most.
Attorney General Pam Bondi characterized the crime plainly: “Preying upon medically compromised consumers is evil.” The DOJ’s Acting Assistant Attorney General noted the brokers “had everything and took advantage of people who had nothing.” This wasn’t sophisticated financial engineering—it was predatory exploitation dressed in business suits.
The sentencing represents part of a larger 2025 DOJ crackdown on healthcare fraud. The strike force charged 5,000 defendants and recovered $560 million from a $15 billion fraud takedown. Lloyd and Strong’s case demonstrates that even licensed professionals entrusted with enrollment authority will face serious consequences when they weaponize that trust against vulnerable populations. The 20-year sentences send a message: exploiting safety nets designed for working families carries prison time measured in decades, not months.
Sources:
Florida execs sentenced in $233M Obamacare fraud that targeted homeless, hurricane victims
