An insurance brokerage president sentenced to 20 years for a $135 million ACA subsidy fraud
AP of South Florida (APSF), a subsidiary of national insurance brokerage AssuredPartners, fraudulently enrolled vulnerable people, including homeless individuals and those with substance abuse or mental health conditions, into fully subsidized ACA plans between February 2021 and September 2022 by submitting false income information and offering cash and gift cards. Its former president, Cory Lloyd, was convicted at trial in November 2025 and sentenced to 20 years in prison. AssuredPartners paid $107 million in a civil False Claims Act settlement and APSF agreed to plead guilty and pay $27.6 million in criminal restitution, for a combined resolution of over $135 million announced in April 2026.
- Year
- 2026
- Where
- United States
- Outcome
- Sentenced
- Reported loss
- $141.5 million
- Victims
- Not stated in the sources
- Schemes
- ACA marketplace switching and enrollment fraud
- Last reviewed
- 2026-09-24
The facts, as recorded
- APSF fraudulently enrolled consumers in fully-subsidized ACA marketplace plans by submitting false income information to the Centers for Medicare & Medicaid Services, obtaining an estimated $141.5 million in unwarranted federal subsidies between February 2021 and September 2022.
- The scheme specifically targeted vulnerable populations, including homeless individuals, unemployed people, and those with substance abuse or mental health issues, offering cash and gift cards as enrollment incentives.
- Operators deliberately submitted false Medicaid-denial information to trigger special enrollment periods outside the normal ACA sign-up window.
- Cory Lloyd, APSF's former president, was convicted at trial in November 2025 on charges of major fraud against the United States, and was sentenced to 20 years in prison.
- Parent company AssuredPartners, Inc. agreed to pay $107 million to resolve civil False Claims Act allegations without being criminally charged; APSF itself agreed to plead guilty and pay $27.6 million in criminal restitution.
- A whistleblower who first brought the fraud to the government's attention is set to receive $24.3 million of the civil settlement.
- Acting Attorney General Todd Blanche said the department "prosecuted the theft of a half-billion in taxpayer dollars" in describing the day's combined enforcement actions; FBI Director Kash Patel said APSF "defrauded the U.S. government to line their pockets by exploiting the vulnerable."
Why this case matters
This is the largest and most severe documented case on this page, the only one that resulted in a criminal conviction and a lengthy prison sentence, rather than a civil settlement alone. It shows the scheme in its most deliberate form: not a rogue agent chasing a commission, but a company allegedly built around falsifying the income and eligibility information the ACA subsidy system depends on.
Who was targeted
DOJ’s account is specific about who bore the human cost: homeless individuals, unemployed people, and people with substance abuse or mental health conditions, populations selected, prosecutors allege, precisely because they were less likely to notice or object to being enrolled in a health plan they had not asked for.
The mechanism
Two elements set this apart from a simple unauthorized switch. First, false income information was submitted so consumers appeared to qualify for a fully subsidized plan regardless of what they actually earned. Second, operators are alleged to have deliberately triggered false Medicaid denials, a document that, when submitted to the marketplace, opens a special enrollment period outside the normal annual window, letting enrollment happen at a time it otherwise legally could not.
The caveat
Cory Lloyd’s conviction, following a trial in November 2025, is a final legal finding; he has been tried, found guilty, and sentenced. AP of South Florida (APSF) has agreed to plead guilty but, as of this case file’s last review, that plea had not yet been entered at a court hearing. AssuredPartners, Inc. resolved civil False Claims Act allegations through a settlement and was not criminally charged; a civil settlement resolves a dispute without necessarily constituting an admission of criminal wrongdoing.
People named in the public record
- Cory Lloyd · convicted
Sources
- National Partnership of Insurance Brokers and its Former Subsidiary Agree to Pay Over $135 Million For Affordable Care Act Enrollment Fraud Scheme. US Department of Justice, Office of Public Affairs. Accessed 2026-09-24. Supports: All facts in this case file: the company names, the $141.5 million subsidy figure, the fraud period, the targeting of vulnerable populations, the false-income and Medicaid-denial mechanics, Cory Lloyd's conviction and 20-year sentence, the $107 million civil settlement, the $27.6 million criminal restitution, the whistleblower award, and the official quotes.