Two top executives, Cory Lloyd and Steven Strong, have been sentenced to 20 years in prison after orchestrating a massive fraud scheme targeting Americans relying on federal health care programs. The scheme, which stole over $180 million from the government, preyed on the most vulnerable members of society, including the homeless, people struggling with addiction, and those with mental health challenges.
How the Fraud Worked
Cory Lloyd, president of an insurance brokerage firm in Stuart, Florida, and Steven Strong, CEO of a marketing company in Mansfield, Texas, created a business that thrived on deception and exploitation. Their goal was simple: enroll people in Affordable Care Act (ACA) health plans that they did not qualify for, in order to collect millions in commissions from insurance companies.
The scheme targeted tens of thousands of low-income individuals. Some of these victims were homeless, unemployed, or dealing with serious health issues. Lloyd and Strong offered bribes to get people to enroll, sometimes using street marketers to reach vulnerable populations. They encouraged applicants to claim they had income, even when they didn’t, to meet the requirements for fully subsidized ACA plans.
They also manipulated federal systems. By submitting fake Medicaid applications that were guaranteed to fail, they ensured victims could then be enrolled in subsidized ACA plans outside the normal enrollment period. This allowed them to collect commissions year-round.
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Evidence from the trial revealed text messages between Lloyd and Strong boasting about their profits and mocking the people they victimized. The messages showed a shocking disregard for human life, with plans to exploit shelters during hurricanes and make money off people at their worst moments.
Massive Financial Gain and Luxurious Lifestyle
The scheme was not just about stealing money; it was also about living in luxury at the expense of others. Lloyd and Strong used their ill-gotten gains to buy expensive waterfront homes, an 80-foot yacht, and luxury cars, including a Tesla.
The total financial scale of the scheme was enormous. Lloyd and Strong attempted to claim $233 million in federal subsidies, and the government paid out at least $180 million in fraudulent claims. Their actions disrupted victims’ medical care, sometimes putting life-saving treatments for opioid use disorders, mental health issues, and infectious diseases at risk.
During the trial, it was clear that Lloyd and Strong were sophisticated and licensed insurance brokers who deliberately targeted people with little means, building a business around deception.
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Court Verdict and Legal Action
In November 2025, Lloyd and Strong were convicted of multiple serious crimes. These included conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States, and money laundering. Each was sentenced to 20 years in prison and ordered to pay $180.6 million in restitution to the government.
A third individual, Dafud Iza, previously pleaded guilty to major fraud against the United States and was sentenced to 35 months in prison.
The case was investigated by several federal agencies, including the FBI, IRS Criminal Investigation, and the Department of Health and Human Services Office of Inspector General (HHS-OIG). Prosecutors emphasized that this case demonstrates the seriousness of health care fraud and the government’s commitment to holding criminals accountable.
Officials including Attorney General Pamela Bondi, FBI Director Kash Patel, and U.S. Attorney Jason A. Reding Quiñones highlighted that the scheme not only stole taxpayer money but also jeopardized the health care of thousands of vulnerable Americans. The court made it clear that exploiting federal programs for personal gain carries severe penalties.
This sentencing marks one of the largest ACA-related fraud cases in recent years. Authorities emphasized that Lloyd, Strong, and their associates deliberately targeted people at their most vulnerable, showing the extreme cruelty and scale of the crime.