STUART, Fla. — A Florida insurance executive and a Texas marketing company CEO have been charged in connection with an alleged $161 million fraud scheme involving Affordable Care Act (ACA) enrollments, according to the U.S. Department of Justice (DOJ).
Cory Lloyd, 46, of Stuart, and Steven Strong, 42, of Mansfield, Texas, were indicted on conspiracy, wire fraud, and money laundering charges in a scheme that allegedly involved submitting fraudulent applications for ACA insurance plans.
The indictment alleges that Mr Lloyd and Mr Strong enrolled individuals in fully subsidized ACA plans by providing false income information, allowing them to collect commission payments from insurance companies.
According to the DOJ, the defendants targeted vulnerable individuals experiencing homelessness, unemployment, and mental health or substance abuse issues. Through so-called “street marketers,” they allegedly offered bribes to enroll people in subsidized ACA plans.
Investigators said marketers working for Strong’s company coached consumers on how to respond to application questions to qualify for federal subsidies.
Prosecutors allege that Mr Lloyd and Mr Strong used deceptive sales tactics, bypassed federal income verification measures, and caused the government to pay at least $161.9 million in subsidies based on fraudulent information.
If convicted, both defendants face up to 20 years in prison on each count of conspiracy to commit wire fraud and wire fraud, five years for conspiracy to defraud the United States, and 10 years for each count of money laundering.
The FBI Miami Field Office, the Department of Health and Human Services Office of Inspector General (HHS-OIG), and IRS Criminal Investigation (IRS-CI) Miami Field Office are investigating the case.
The DOJ emphasized that an indictment is merely an allegation, and both defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
