Florida and Texas Men Charged in $161M ACA Fraud Scheme

March 10, 2025

Indictment Details ACA Fraud Involving Millions in Commissions

Today, authorities unsealed an indictment charging Cory Lloyd, 46, from Stuart, Florida, and Steven Strong, 42, from Mansfield, Texas, for allegedly participating in a fraudulent scheme targeting the Affordable Care Act (ACA). The scheme aimed to secure millions in commission payments by submitting fraudulent enrollments for fully subsidized ACA insurance plans.

Fraudulent Enrollments and Their Impact

Court documents reveal that Lloyd and Strong conspired to enroll individuals in fully subsidized ACA plans by submitting false applications. These applications misrepresented individuals’ incomes, who otherwise did not qualify for subsidies. Lloyd reportedly received commission payments from insurance companies for enrolling these individuals and shared these commissions with Strong in exchange for consumer referrals.

Targeting Vulnerable Populations

The indictment highlights that Lloyd and Strong exploited vulnerable, low-income individuals facing challenges such as homelessness, unemployment, and mental health issues. Through "street marketers," they sometimes resorted to offering bribes to encourage these individuals to enroll in subsidized ACA plans. Marketers coached consumers on how to answer application questions to secure the highest subsidy possible, even using mismatched addresses and social security numbers.

Use of Deceptive Tactics

Sales scripts and misleading techniques were allegedly used to persuade consumers to claim they would earn the minimum income required for subsidy eligibility, despite having no income. They are also accused of evading federal verifications, leading to the government covering at least $161.9 million in improper subsidies.

Charges and Consequences

Both Lloyd and Strong face multiple charges, including conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States, and money laundering. If convicted, they could face up to 20 years in prison for each wire fraud-related count, five years for defrauding the government, and 10 years for each money laundering charge.

Ongoing Investigation and Prosecution

The FBI, Department of Health and Human Services Office of Inspector General (HHS-OIG), and IRS Criminal Investigation (IRS-CI) are leading the investigation. The case is being prosecuted by Assistant Chief Jamie de Boer and Trial Attorney D. Keith Clouser of the Criminal Division’s Fraud Section.

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