Two healthcare executives have been sentenced to 20 years in federal prison each after orchestrating a massive $233 million fraud scheme targeting Obamacare subsidies, according to the U.S. Department of Justice.
The convicted defendants, identified in court documents as Cory Lloyd of Stuart, Florida and Steven Strong of Mansfield, Texas, were found guilty of running a years-long operation that preyed on tens of thousands of vulnerable Americans, including individuals experiencing homelessness, addiction, and mental health struggles.
Federal prosecutors revealed that Lloyd and Strong:
- Improperly enrolled low-income individuals into fully subsidized ACA plans
- Submitted false income information to qualify applicants for federal subsidies
- Deliberately bypassed federal income-verification systems
- Filed thousands of Medicaid applications designed to be denied, allowing year-round enrollment into subsidized ACA plans outside normal enrollment periods
By gaming the system, the pair sought more than $233 million in fraudulent ACA plan subsidies, with the federal government ultimately paying out at least $180 million in taxpayer-funded benefits tied to false enrollments.