Major ACA Fraud Conviction: Two Executives Sentenced for Insurance Schemes

In a landmark case, a federal jury in West Palm Beach has convicted two insurance executives for orchestrating a fraudulent scheme involving Affordable Care Act (ACA) plan subsidies. Cory Lloyd, former president of Fiorella Insurance Agency, and Steven Strong, CEO of a Texas-based marketing business, fraudulently acquired over $233 million in ACA tax credits. Their actions, centered on regulatory compliance violations, misrepresented income eligibility to claim full federal subsidies.

The U.S. Department of Justice led the investigation, uncovering that the fraudulent enrollments targeted economically vulnerable individuals, disrupting existing healthcare coverage. Financially, Lloyd earned commissions from policy enrollments, transferring referral-based commissions to Strong, exemplifying the intricate web of payer and provider exploitation. Both face charges of conspiracy to commit wire fraud and additional counts, with sentences potentially reaching up to 20 years.

This case illustrates the critical role of regulatory compliance and risk management in the insurance industry. The collaborative investigation, involving the FBI, Department of Health and Human Services' Office of Inspector General, and IRS Criminal Investigations, highlights the stringent measures taken to protect government resources and uphold industry integrity. The sentencing of Lloyd and Strong is scheduled for early 2026, marking a significant step in health insurance fraud prevention.