Two executives sentenced to 20 years in $233m ACA insurance fraud scheme

News desk: Two insurance executives, Cory Lloyd and Steven Strong, were each sentenced to 20 years in federal prison on February 18, 2026, for their roles in a $233 million fraud scheme involving Affordable Care Act (ACA) enrollments.

Lloyd, 47, president of an insurance brokerage firm, and Strong, 43, CEO of a marketing company, orchestrated a years-long scheme to fraudulently enroll tens of thousands of vulnerable individuals, including the homeless, unemployed, those struggling with addiction or mental health issues, and hurricane victims, into fully subsidised ACA health plans.

The scheme generated millions of dollars in improper commissions paid by insurance carriers to the brokerage, which then shared payments with the marketing firm. In total, the operation sought more than $233 million in fraudulent subsidies, with the federal government paying at least $180 million directly to insurers.

Both men were convicted in November 2025 by a federal jury in West Palm Beach, Florida, on charges including conspiracy to commit wire fraud, multiple counts of wire fraud, and conspiracy to defraud the United States. Strong was also convicted on additional money laundering charges.

According to court evidence, the defendants falsified government forms, misled or bribed individuals, and submitted enrollment applications without their knowledge or consent, often disrupting victims’ existing health coverage.

Authorities said the defendants used proceeds from the fraud to fund a lavish lifestyle, including the purchase of luxury vehicles, an 80-foot yacht, and an oceanfront home in the Florida Keys.

The court ordered both defendants to pay more than $180 million in restitution. A third defendant, Dafud Iza, previously pleaded guilty and was sentenced to 35 months in prison.

Prosecutors described the case as a significant example of how the ACA’s subsidised marketplace can be exploited for personal gain at the expense of taxpayers.