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Two Florida Business Leaders Sentenced to 20 Years for $233 Million Affordable Care Act Fraud
Two business executives received 20-year prison sentences Wednesday for orchestrating one of the largest healthcare fraud schemes targeting the Affordable Care Act, according to Justice Department officials.
Cory Lloyd, 46, of Stuart, Florida, and Steven Strong, 42, of Mansfield, Texas, were convicted of conspiracy and fraud for a scheme that defrauded federal programs of $233 million by exploiting Florida’s most vulnerable residents. The pair was also ordered to pay $180.6 million in restitution to their victims.
Lloyd, president of a Florida insurance brokerage firm, and Strong, CEO of a marketing company, targeted approximately 35,000 homeless individuals, people with mental health disorders, unemployed residents, and hurricane victims across Florida. They submitted falsified government forms to obtain healthcare coverage for these individuals, often lying to or bribing potential enrollees to sign up for plans that disrupted their existing coverage.
“Preying upon medically compromised consumers to rob hundreds of millions of taxpayer-funded programs is evil and unforgivable,” Attorney General Pam Bondi said in a statement. “Fraud schemes like this rob citizens and shake faith in our institutions.”
Court evidence revealed the defendants lived lavishly from their fraudulent activities, purchasing luxury vehicles, an 80-foot yacht, and an oceanfront home in the Florida Keys—a stark contrast to the living conditions of those they victimized.
“These defendants were sophisticated, licensed insurance brokers,” Assistant Attorney General A. Tysen Duva said. “They had everything and intentionally took advantage of people who had nothing.”
According to prosecutors, Lloyd and Strong deliberately circumvented federal income and eligibility verification safeguards. They submitted Medicaid applications designed to trigger denials, then steered those same individuals into fully subsidized Affordable Care Act plans outside the normal enrollment period, maximizing commissions year-round.
The scheme’s impact went beyond financial damage. Many victims lost access to life-saving treatments for opioid use disorders, mental health conditions, and serious infectious diseases when their coverage was disrupted.
One particularly disturbing piece of evidence presented at trial was a text exchange where Strong suggested sending “street marketers” into Florida hurricane shelters to recruit enrollees. Lloyd responded enthusiastically, calling it “a killer idea, if we could pull it off!”
A Jacksonville psychiatrist testified about the real-world harm caused to his patients, including an individual with schizoaffective disorder who was “living in the woods behind Walmart.” This patient had previously been enrolled in Medicaid, which fully covered a $2,000 treatment shot for their condition. When fraudulently switched to an Affordable Care Act plan, they lost that critical coverage.
The case highlights the Justice Department’s intensified focus on healthcare fraud. The department’s “strike force” program, operating across 25 federal districts, has resulted in criminal charges against approximately 5,000 individuals. In 2025, the DOJ’s Health Care Fraud Unit secured its largest national healthcare fraud takedown in history, charging more than $15 billion in alleged losses and returning over $560 million to the public.
Justice Department officials emphasized the financial impact of these enforcement actions, noting the recovered funds represent “many, many, many times our annual budget.”
The sentencing underscores the administration’s commitment to combating fraud that targets vulnerable populations and undermines public healthcare programs. As healthcare costs continue to rise nationwide, authorities have pledged to pursue individuals who exploit system weaknesses for personal gain, particularly when their schemes harm those most in need of medical care.
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20 Comments
Targeting the homeless and hurricane victims for a massive healthcare fraud scheme is truly reprehensible. I’m glad the perpetrators were held accountable and received substantial sentences for their crimes.
This case underscores the importance of having robust safeguards in place to protect government healthcare programs from being exploited by unscrupulous individuals. Continuous vigilance is key to preventing such large-scale fraud.
I’m curious to know more about how this scheme was uncovered and what steps are being taken to prevent similar fraud in the future. Defrauding government healthcare programs on this scale is a serious offense.
It’s good to see the authorities taking such a strong stance against this type of fraud. Hopefully, the hefty sentences and restitution orders will send a clear message that this kind of behavior will not be tolerated.
This is a concerning case that highlights the need for stronger protections and oversight to prevent the exploitation of the most vulnerable individuals in our society. I hope the victims receive the support they need to recover from this ordeal.
It’s good to see the authorities taking decisive action against these perpetrators. Hopefully, this will serve as a wake-up call to others who might be tempted to engage in similar fraudulent activities.
I’m appalled to read about this massive healthcare fraud scheme that targeted the homeless, the mentally ill, and hurricane victims. These perpetrators deserve the harsh sentences they received for their callous disregard of the vulnerable individuals they exploited.
Hopefully, the substantial restitution ordered will help provide some measure of compensation to the victims of this fraud. It’s crucial that steps are taken to prevent such large-scale exploitation of government programs in the future.
This is a disturbing case that highlights the need for stronger oversight and accountability in the healthcare system. Targeting the homeless and hurricane victims for personal gain is truly unconscionable.
I hope the victims of this fraud are able to receive the support and assistance they need to recover from the damage caused by these unscrupulous individuals.
This is a despicable case of fraud targeting the most vulnerable members of society. Exploiting the homeless, the mentally ill, and hurricane victims for personal gain is truly abhorrent. These executives deserve the harsh sentences handed down for their egregious crimes.
I’m glad the authorities were able to uncover and prosecute this large-scale fraud scheme. Hopefully, this will serve as a deterrent to others considering similar scams.
Wow, $233 million in fraudulent healthcare claims? That’s an astounding amount of money stolen from government programs meant to help those in need. It’s good to see the perpetrators receive substantial prison time for their crimes.
Preying on the most vulnerable members of society to line their own pockets is truly despicable. I hope the restitution ordered helps make some amends to the victims of this fraud.
This is a shocking case of fraud that exploited some of the most vulnerable members of society. I hope the substantial sentences handed down to the perpetrators serve as a strong deterrent to others considering similar criminal activities.
It’s good to see the authorities taking such a firm stance against this type of fraud. Hopefully, the restitution ordered will help provide some measure of compensation to the victims of this scheme.
It’s disheartening to see such a large-scale fraud scheme targeting the most vulnerable members of society. I hope the harsh sentences handed down serve as a deterrent to others considering similar criminal activities.
This case underscores the importance of robust fraud detection and prevention measures in the healthcare industry. Continuous vigilance is necessary to protect taxpayer-funded programs from such exploitation.
Defrauding government healthcare programs of $233 million by targeting the homeless and hurricane victims is a truly egregious crime. I’m glad the perpetrators were held accountable and received lengthy prison sentences.
This case highlights the need for improved oversight and fraud detection mechanisms in the healthcare industry. Continuous vigilance is essential to protect vulnerable populations from being exploited in this manner.