Florida execs sentenced in $233M Obamacare fraud that targeted homeless, hurricane victims

The two men defrauded the Affordable Care Act to prey on vulnerable Florida residents — and used proceeds to purchase luxury vehicles, an 80-foot yacht, and an oceanfront home in the Florida Keys. Donald Trump Florida execs sentenced in $233M Obamacare fraud that targeted homeless, hurricane victims The men used the proceeds to purchase luxury vehicles, an 80-foot yacht, and an oceanfront home in the Florida Key, DOJ officials said By Breanne Deppisch , Jake Gibson Fox News Published February 18, 2026 5:40pm EST Facebook Twitter Threads Flipboard Comments Print Email Add Fox News on Google close Video Trump to establish Vance-led task force to root out fraud Rep. Tim Burchett, R-Tenn., joins ‘Saturday in America’ to discuss the fraud allegations in states across America as the Trump administration cracks down on Democrat-run states. NEWYou can now listen to Fox News articles! 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 — including homeless and jobless individuals and newly displaced hurricane victims — to pocket millions in unearned commissions. Cory Lloyd, 46, of Stuart, Florida, and Steven Strong, 42, of Mansfield, Texas, were convicted of conspiracy and fraud for their roles in the scheme, which involved lying and falsifying government forms to obtain coverage for individuals, and lying to or bribing would-be enrollees to sign up for plans — even when they knew doing so would cost them their existing insurance coverage. In addition to their prison time, the pair were ordered to pay $180.6 million in restitution to their victims. Lloyd and Strong profited handsomely for years from the scheme, Justice Department officials said, using the proceeds to purchase luxury vehicles, an 80-foot yacht and an oceanfront home in the Florida Keys. "Preying upon medically compromised consumers to rob hundreds of millions of taxpayer-funded programs is evil and unforgivable," Attorney General Pam Bondi told Fox News Digital in a statement. FEDERAL JUDGE BLOCKS TRUMP'S BID TO MOVE BIDEN-COMMUTED DEATH ROW INMATES TO ‘ALCATRAZ OF THE ROCKIES’ U.S. Attorney General Pam Bondi speaks alongside President Donald Trump. (Getty Images) "Fraud schemes like this rob citizens and shake faith in our institutions — today’s sentencing is the latest example of this DOJ’s commitment to fighting fraud nationwide," Bondi said.An estimated 35,000 individuals were fraudulently enrolled in Affordable Care Act plans during the years-long scheme led by Lloyd and Strong, Justice Department officials with knowledge of the case told Fox News Digital. The two sought more than $233 million in fraudulent payments, including about $180 million in federal Affordable Care Act funding. "These defendants were sophisticated, licensed insurance brokers," Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division said in a statement. "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."The two intentionally targeted people in the state who were experiencing homelessness, according to court documents, and people experiencing mental health disorders, including addiction to opioids or other drugs, according to materials reviewed by Fox News Digital. Prosecutors said at trial that Lloyd and Strong conspired to circumvent federal income and eligibility verification safeguards. They also intentionally submitted Medicaid applications designed to trigger denials, allowing them to steer those same individuals into fully subsidized Affordable Care Act plans outside the open enrollment period — maximizing commissions year-round. TRUMP DOJ APPOINTEE THOMAS ALBUS TAPPED TO LEAD FULTON COUNTY SEARCH WARRANT FIGHT Former President Trump denied wanting to repeal the Affordable Care Act (Getty Images)Their lavish lifestyle contrasted starkly with that of the individuals they lied to and scammed. "One of the really awful things about the case is that it's not only a scheme that's taking money from the elderly and the disabled, and defrauding the taxpayers, but that it actually resulted in real harm to the patients as well," one Justice Department official said in an interview.That harm included individuals losing access to life-saving treatments for opioid use disorders, mental health disorders and serious infectious diseases. Text messages introduced at trial showed Strong and Lloyd discussing sending "street marketers" into Florida hurricane shelters to recruit enrollees.In one text exchange, Strong suggested sending their team of "street marketers" into Florida hurricane shelters to recruit enrollees. Lloyd responded enthusiastically, stating, "It’s a killer idea, if we could pull it off!"Prosecutors said the efforts were particularly harmful because they disrupted existing coverage plans and je