U.S. Attorney General Pam Bondi speaks alongside President Donald Trump. (Getty Images)
"Fraud schemes like this rob citizens and shake faith in our institutions — today’s sentencing is the latest example of this DOJ’s commitment to fighting fraud nationwide," Bondi said.
An estimated 35,000 individuals were fraudulently enrolled in Affordable Care Act plans during the years-long scheme led by Lloyd and Strong, Justice Department officials with knowledge of the case told Fox News Digital. The two sought more than $233 million in fraudulent payments, including about $180 million in federal Affordable Care Act funding.
"These defendants were sophisticated, licensed insurance brokers," Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division said in a statement. "They had everything and intentionally took advantage of people who had nothing. The message from these sentences is simple: those who seek to line their own pockets with taxpayer dollars, victimize our most vulnerable and deplete federal programs will be held accountable."
The two intentionally targeted people in the state who were experiencing homelessness, according to court documents, and people experiencing mental health disorders, including addiction to opioids or other drugs, according to materials reviewed by Fox News Digital.
Prosecutors said at trial that Lloyd and Strong conspired to circumvent federal income and eligibility verification safeguards. They also intentionally submitted Medicaid applications designed to trigger denials, allowing them to steer those same individuals into fully subsidized Affordable Care Act plans outside the open enrollment period — maximizing commissions year-round.
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Matthew Galeotti, head of the Justice Department’s Criminal Division, joined by Centers for Medicare and Medicaid Services Administrator Mehmet Oz, delivers remarks during a press conference announcing the largest health care fraud case in history. (Kevin Dietsch/Getty Images)
Like others, this individual had previously been enrolled in Medicaid, which covered the entirety of a $2,000 shot used to treat the schizoaffective disorder. Enrollment in an Affordable Care Act plan caused the individual to lose that coverage.
The sentencing comes as the Justice Department has moved aggressively to crack down on health care fraud, including through its ongoing "strike force" program, which operates across 25 federal districts and has resulted in criminal charges against about 5,000 individuals, according to information shared with Fox News Digital.
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It also comes as the DOJ's Health Care Fraud Unit secured the largest national health care fraud takedown in its history in 2025, officials said — charging more than $15 billion in alleged losses and forfeitures and returning more than $560 million to the public.
Justice Department officials noted the amount is "many, many, many times our annual budget."
Breanne Deppisch is a national politics reporter for Fox News Digital covering the Trump administration, with a focus on the Justice Department, FBI and other national news. She previously covered national politics at the Washington Examiner and The Washington Post, with additional bylines in Politico Magazine, the Colorado Gazette and others. You can send tips to Breanne at Breanne.Deppisch@fox.com, or follow her on X at @breanne_dep.
https://www.foxnews.com/politics/florida-execs-sentenced-233m-obamacare-fraud-targeted-homeless-hurricane-victims