Two executives have been arrested for orchestrating a $233 million Affordable Care Act fraud scheme. The executives arrested include the president of an insurance brokerage firm and the CEO of a marketing company.
The individuals reportedly targeted the most defenseless residents in Florida, preying on the homeless, jobless, and those who suffered because of the hurricane.
Cory Lloyd, 46, of Stuart, Florida, and Steven Strong, 42, of Mansfield, Texas, conspired together to commit the fraud.
FIRST ON FOX: The president of a Florida insurance brokerage firm and the CEO of a marketing company were sentenced Wednesday to 20 years each in prison for leading a sprawling, $233 million Affordable Care Act fraud scheme that preyed on Florida’s most vulnerable residents —… pic.twitter.com/JpQFcbv8M7
— Qᴀɢɢ.ɴᴇᴡꜱ (@qaggnews) February 18, 2026
They counterfeited government forms and obtained coverage for the vulnerable residents. A judge sentenced them to 20 years each in prison and ordered them to pay an additional $180.6 million in restitution to the victims.
Lloyd and Strong reportedly managed to enroll an estimated 35,000 individuals in Affordable Care Act plans over the years.
The victims lost access to life-saving treatments and couldn’t afford medications for opioid use disorders, mental health disorders and contagious diseases.
A Department of Justice (DOJ) official said that the executives were not only preying on taxpayers, but also on the patients, including elderly residents who were affected gravely.
Many of these individuals lost their medical coverage. One displaced individual who is dealing with schizophrenia lost the medical coverage that was covering his $2000 shot.
The duo pocketed more than $233 million in fraudulent payments over the years, which also includes almost $180 million in federal Affordable Care Act funding.
Florida insurance execs Cory Lloyd and Steven Strong were sentenced on February 18, 2026 in Florida to 20 years each for orchestrating a $233 million Obamacare fraud that preyed on homeless individuals and hurricane survivors through bogus enrollment tactics while lining…
— Nic A (@RThadt) February 19, 2026
Jurors reviewed some of the text messages exchanged between the two culprits that showed their lack of moral compass. The messages revealed that they discussed the possibility of sending “street marketers” into Florida hurricane shelters to recruit enrollees.
Attorney General Pam Bondi released a statement via Fox News, saying, “Preying upon medically compromised consumers to rob hundreds of millions of taxpayer-funded programs is evil and unforgivable.”
“Fraud schemes like this rob citizens and shake faith in our institutions. Today’s sentencing is the latest example of the DOJ’s commitment to fighting fraud nationwide,” Bondi said.
The fraudsters purchased luxury vehicles, an 80-foot yacht and an oceanfront home in the Florida Keys with the profits.
Assistant Attorney General A. Tysen Duva of the DOJ’s Criminal Division revealed that Lloyd and Strong benefited from the vulnerability of those individuals by using their insurance licenses. “These defendants were sophisticated, licensed insurance brokers,” Duva said, adding, “They had everything and intentionally took advantage of people who had nothing.”
“The message from these sentences is simple: Those who seek to line their own pockets with taxpayer dollars, victimize our most vulnerable and deplete federal programs will be held accountable,” he stated.
