A federal jury in South Florida has found two men guilty of running a long-running scheme that involved signing homeless people up for health insurance under the Affordable Care Act (ACA) in a fraudulent way. Cory Lloyd, 46, from Stuart, Florida, and Steven Strong, 42, from Mansfield, Texas, convinced enough people to enroll in these plans to trigger $180 million in government tax-credit payments. They made millions in commissions from the scheme.
The tax credits are payments the government gives to lower the cost of health insurance premiums for eligible individuals. However, Lloyd and Strong submitted false applications for people whose income was too high to qualify for the credits. Lloyd earned commissions from an insurance company by enrolling these consumers and paid Strong commissions for sending referrals his way.
The scheme exploited vulnerable groups, including people facing financial struggles, addiction issues, and mental health challenges. Marketers involved gave away cash, gift cards, food, and alcohol to convince people to enroll. They even coached them on how to answer application questions to secure the largest subsidies. Some applications included fake addresses and Social Security numbers.
Lloyd created a marketing company called Strong Opportunities, also known as FloridaCare Insurance, which the indictment highlighted. Although Lloyd once held insurance licenses in Florida for life, health, and general lines, those were canceled years ago. Still, records show he maintained appointments with numerous property-casualty insurers up until at least 2022.
Authorities said this scam cost taxpayers a total of $233 million. “The defendants took advantage of a health care safety net meant for working families," said Acting Assistant U.S. Attorney General Matthew Galeotti. The case shines a light on how fraud can harm both vulnerable individuals and the larger community by draining crucial public funds.