The Justice Department (DOJ) announced on Feb. 19 that Cory Lloyd, 46, from Stuart, Florida, and Steven Strong, 42, from Mansfield, Texas, were charged in a scheme to defraud the Affordable Care Act (ACA) by enrolling ineligible individuals, resulting in millions in commissions.
According to the indictment, the two men targeted low-income individuals, including those with homelessness, unemployment, and mental health or substance abuse disorders. They operated through a network of “street marketers” who sometimes offered bribes and coached consumers on how to provide false information to maximize ACA subsidies.
Lloyd and Strong’s fraudulent tactics included convincing consumers to report false income to qualify for subsidies, and using incorrect Social Security numbers to further the scheme. This led to the federal government paying at least $161.9 million in improper subsidies.
Lloyd and Strong face serious charges, including wire fraud, conspiracy to defraud the U.S., and money laundering, with each facing a maximum of 20 years in prison for wire fraud and up to 10 years for money laundering.
