Overview
- Cory Lloyd of Florida and Steven Strong of Texas were each sentenced to 20 years in federal prison and ordered to pay $180.6 million in restitution after November 2025 convictions for conspiracy and wire fraud.
- Court records show the scheme sought more than $233 million in fraudulent subsidies, with at least $180 million paid out by the federal government.
- Trial evidence showed false applications, bribes, deceptive sales scripts and mass Medicaid-denial filings used to bypass verification and enroll people outside open enrollment.
- Victims included people experiencing homelessness, unemployment and mental health or substance use disorders, and some lost access to necessary treatments or existing Medicaid coverage; texts showed plans to send recruiters into hurricane shelters.
- Proceeds funded luxury purchases including a Florida Keys home, an 80-foot yacht and a Tesla; a third participant, Dafud Iza, received 35 months, and DOJ officials told Fox News an estimated 35,000 people were fraudulently enrolled.