Florida Execs Get 20 Years for $233M Healthcare Fraud

Two insurance executives who preyed on Florida's most vulnerable residents are heading to prison for 20 years after orchestrating one of the largest healthcare fraud schemes in recent history.

Cory Lloyd and Steven Strong targeted homeless individuals, people battling addiction, and hurricane victims to fraudulently enroll them in Affordable Care Act plans they didn't need. The scheme netted the pair $233 million in fraudulent payments, money they used to buy luxury yachts, oceanfront mansions, and expensive cars while their victims lost access to critical healthcare.

The fraud worked by deliberately disrupting existing coverage that actually helped people. Prosecutors revealed that Lloyd and Strong intentionally submitted applications designed to kick vulnerable Floridians off their Medicaid plans, then enrolled them in subsidized ACA plans that earned the executives massive commissions but left patients worse off.

One victim was a homeless man living in the woods behind a Walmart who suffered from schizoaffective disorder. His Medicaid had covered a $2,000 monthly injection he desperately needed. After being fraudulently switched to an ACA plan, he lost that coverage entirely.

Text messages shown at trial revealed the depths of their callousness. Strong suggested sending recruiters into hurricane shelters to sign up displaced storm victims. Lloyd responded enthusiastically: "It's a killer idea, if we could pull it off!"

An estimated 35,000 people were fraudulently enrolled over several years. Many lost access to life-saving treatments for opioid addiction, mental health conditions, and serious diseases because the new plans didn't cover what they actually needed.

A Jacksonville psychiatrist who treats homeless patients testified about the real harm his patients suffered when their appropriate coverage was stripped away for profit.

Why This Inspires

This case shows the justice system working exactly as it should to protect the most vulnerable. Attorney General Pam Bondi called the scheme "evil and unforgivable," and the courts agreed with a sentence that matches the severity of the crime.

The $180.6 million restitution order means victims may actually recover some of what was stolen from them. More importantly, this prosecution sends a clear message that exploiting homeless individuals, addiction patients, and disaster victims for personal gain will result in serious consequences.

The Justice Department's aggressive healthcare fraud crackdown is protecting programs designed to help people who need them most. When fraudsters drain these systems, they don't just steal taxpayer money. They actively harm people already fighting to survive.

This sentencing represents accountability for thousands of vulnerable Floridians who deserved care, not exploitation.