Full Breakdown
Florida Executives Sentenced for $233 Million Affordable Care Act Fraud
2/19/2026, 5:53:31 AM
Overview of the Fraud Scheme
Cory Lloyd, 46, president of a Florida insurance brokerage firm, and Steven Strong, 42, CEO of a marketing company, were sentenced to 20 years in prison for orchestrating a $233 million fraud scheme related to the Affordable Care Act (ACA). The scheme targeted vulnerable populations, including homeless individuals, jobless residents, and hurricane victims, leading to significant financial and health repercussions for the victims involved. In addition to their prison sentences, the pair was ordered to pay $180.6 million in restitution.
Methodology of the Fraud
Lloyd and Strong were convicted of conspiracy and fraud for falsifying government forms to enroll approximately 35,000 individuals in ACA plans. Prosecutors revealed that they circumvented federal income and eligibility verification safeguards and submitted Medicaid applications designed to trigger denials. This allowed them to steer individuals into fully subsidized ACA plans outside the open enrollment period, maximizing their commissions throughout the year. Their actions not only defrauded taxpayers but also disrupted existing healthcare coverage for many, resulting in real harm to patients.
Impact on Victims
The fraudulent activities led to severe consequences for many victims, including loss of access to essential treatments for conditions such as opioid use disorders and mental health disorders. For instance, a patient suffering from schizoaffective disorder lost Medicaid coverage, which previously funded a critical $2,000 treatment. Testimonies from healthcare professionals highlighted the detrimental effects of the fraud on their patients, emphasizing that the scheme exacerbated the struggles of already vulnerable individuals.
Official Statements & Responses
Attorney General Pam Bondi condemned the actions of Lloyd and Strong, stating, "Preying upon medically compromised consumers to rob hundreds of millions of taxpayer-funded programs is evil and unforgivable." She emphasized the Justice Department's commitment to combating fraud, noting that such schemes undermine public trust in institutions. Assistant Attorney General A. Tysen Duva remarked on the sophistication of the defendants, stating, "They had everything and intentionally took advantage of people who had nothing."
Criticism & Opposition
Critics of the scheme have pointed out the broader implications of healthcare fraud, arguing that it not only harms individuals but also erodes public confidence in healthcare systems. The Justice Department's aggressive stance against healthcare fraud, including the ongoing "strike force" program, aims to address these issues, with approximately 5,000 individuals charged in related cases.
What's Next
The sentencing of Lloyd and Strong is part of a larger initiative by the Justice Department's Health Care Fraud Unit, which has recently achieved significant milestones in combating healthcare fraud. In 2025, the unit secured the largest national healthcare fraud takedown in its history, charging over $15 billion in alleged losses and returning more than $560 million to the public. This ongoing effort underscores the commitment to holding accountable those who exploit vulnerable populations for financial gain.
