Insurance Fraud Ring Charged in ACA Scheme

An indictment has been unsealed against Cory Lloyd from Florida and Steven Strong from Texas, charging them with participating in a fraudulent scheme involving the Affordable Care Act (ACA). They allegedly submitted false applications to enroll consumers in subsidized ACA plans, targeting vulnerable populations with misleading techniques and bribes. The duo aimed to collect millions in commission from insurance companies by enrolling individuals whose incomes did not qualify for the subsidies. Their actions resulted in significant financial losses to the federal government and disruptions in medical care for those improperly enrolled.

The court documents detail the conspiratorial methods used, including engaging "street marketers" to facilitate the scam and coaching applicants on misleading income disclosures. Claims indicate that Lloyd and Strong fabricated consumer information to evade federal verification processes. They are charged with multiple counts, including wire fraud and money laundering, and face severe prison sentences if convicted. The investigation is being led by federal organizations, including the FBI and HHS-OIG.