Former Florida Broker and Others Indicted in Major Insurance Fraud Schemes

February 22, 2025 | JacobiJournal.com — Major Insurance Fraud Schemes: Authorities in Florida and Texas have charged five individuals in separate insurance fraud schemes, including a former licensed broker accused of ACA enrollment fraud and a medical clinic group allegedly staging auto accidents for financial gain.

Staged Auto Accidents in Hialeah

In Hialeah, Florida, law enforcement arrested three individuals connected to a medical clinic fraud operation. The suspects allegedly orchestrated staged car accidents to file fraudulent insurance claims.

The Miami-Dade Sheriff’s Office identified the accused as:

Ofir Macias, 55 – Therapist at MO Medical Center
Yisell Rojas, 39
Ivian Nieto Lazo, 37

Authorities uncovered the fraud after a driver involved in a staged crash attempted to add an unrelated person to the accident report. Bodycam footage from an officer revealed inconsistencies in the damage and crash description, leading to further investigation.

Individuals claiming to be victims of the crash later admitted they had been directed to MO Medical Center to report fake injuries for insurance payouts.

Charges Against the Florida Defendants

Miami-Dade arrest records indicate that Macias faces multiple charges, including:

Racketeering
Filing fraudulent insurance claims
General fraud

As of late Wednesday, his bond had not been set.

ACA Fraud Scheme Tied to Ex-Broker

Separately, federal prosecutors have charged Cory Lloyd, 46, a former Florida-licensed insurance broker, and Steven Strong, 42, of Mansfield, Texas, in a scheme to fraudulently enroll homeless individuals in ACA insurance plans to collect commission payments.

According to the U.S. Department of Justice (DOJ), Lloyd and Strong orchestrated a deceptive enrollment scheme by:

Using misleading sales scripts to encourage individuals to inflate income estimates for ACA eligibility
Offering bribes, including cash, gift cards, food, and alcohol, to entice individuals into enrolling
Coaching consumers on how to answer application questions to maximize government subsidies
Using false addresses and Social Security numbers for fraudulent enrollments

The fraudulent enrollments led to over $161 million in government payouts.

Lloyd’s Insurance Background and Licensing History

Records from Florida’s Department of Financial Services (DFS) show that:

Lloyd previously held life, health, and general lines licenses, but they were canceled through administrative action.
He was appointed by multiple property-casualty insurers, with some appointments extending as recently as 2022.
His insurance agency, FloridaCare Insurance, played a key role in the fraudulent activities.

Lloyd and Strong now face federal indictment and potential severe penalties.

Read the full DOJ bulletin here.

New Update: Florida Broker and Texas Executive Sentenced to 20 Years in $233 Million Insurance Fraud Scheme

One of the major insurance fraud schemes reported in February 2025 has resulted in federal convictions, lengthy prison sentences, and substantial restitution orders. On February 18, 2026, former Florida insurance brokerage executive Cory Lloyd and Texas marketing company executive Steven Strong were each sentenced to 20 years in federal prison for their roles in a fraudulent Affordable Care Act enrollment operation.

A federal jury in West Palm Beach, Florida, had convicted both men in November 2025 following a trial examining how their businesses submitted false enrollment information to obtain federally subsidized health insurance coverage for individuals who did not qualify. Lloyd and Strong were convicted of conspiracy to commit wire fraud, three counts of wire fraud, and conspiracy to defraud the United States.

Strong was additionally convicted of two money laundering counts. The court also sentenced each defendant to three years of supervised release and ordered them to pay $180.6 million in restitution. Prosecutors established that the operation sought more than $233 million in fraudulent Affordable Care Act subsidies, of which the federal government paid at least $180 million.

These findings substantially expand upon the $161.9 million subsidy figure identified when the original indictment was announced in February 2025. The defendants filed appeals with the U.S. Court of Appeals for the Eleventh Circuit on March 4, 2026, meaning the convictions and sentences remain subject to appellate review.

Federal prosecutors presented evidence showing that Lloyd and Strong coordinated a multiyear operation designed to generate millions of dollars in insurance commissions through fraudulent Affordable Care Act enrollments. The scheme targeted economically vulnerable individuals, including people experiencing homelessness, unemployment, substance use disorders, and mental health challenges.

Street marketers recruited consumers and sometimes offered financial incentives, while enrollment applications contained inaccurate income information, addresses, or Social Security numbers. Investigators established that the defendants used misleading sales practices to convince consumers to report income projections that would make them appear eligible for subsidized coverage. The operation also involved deliberately submitting Medicaid applications in circumstances designed to produce denials, allowing consumers to enroll in federally subsidized plans outside ordinary enrollment periods.

According to the Department of Justice, some individuals experienced disruptions in their existing medical coverage and access to treatment after being enrolled in plans for which they were ineligible. Prosecutors also demonstrated that proceeds from the scheme supported luxury purchases, including expensive real estate, vehicles, and a yacht. A related participant, Dafud Iza, pleaded guilty to major fraud against the United States and received a 35-month federal prison sentence on January 6, 2026, together with an order to pay $133.9 million in restitution. These developments establish that the federal prosecution extended beyond the two defendants originally identified in the February 2025 report.

Additional corporate accountability proceedings emerged in April 2026. Federal prosecutors charged AP of South Florida LLC, doing business as Fiorella Insurance Agency, with major fraud against the United States in connection with the same enrollment operation. The company entered into an agreement to plead guilty, subject to the federal district court’s acceptance. Prosecutors alleged that the business continued fraudulent enrollment activities after acquiring assets associated with an earlier entity involved in the scheme.

The case illustrates how fraudulent insurance enrollment operations can expose both individuals and corporate organizations to criminal liability, restitution obligations, and other financial consequences. The federal proceedings should be distinguished from the separate staged automobile accident investigation involving Ofir Macias, Yisell Rojas, and Ivian Nieto Lazo in Hialeah, Florida, which was also discussed in the original article. Those defendants were not part of the Lloyd and Strong Affordable Care Act prosecution, and the federal convictions do not establish the outcome of the Hialeah investigation.

No independently verified final disposition of that separate automobile insurance fraud case was identified in the official materials reviewed for this update. As of October 2026, the central development is that the Affordable Care Act enrollment scheme has progressed from criminal charges to jury convictions, 20-year prison sentences, substantial restitution orders, and pending federal appeals.

The prosecution underscores the financial and consumer protection risks associated with falsified insurance applications, commission-driven enrollment manipulation, and exploitation of vulnerable individuals.

For additional information, read the U.S. Department of Justice’s official case status page for United States v. Cory Lloyd and Steven Strong, including convictions, sentencing, appeals, and related proceedings.

FAQs: Major Insurance Fraud Schemes

What were the major insurance fraud schemes uncovered in Florida and Texas?

Authorities revealed major insurance fraud schemes involving staged auto accidents in Hialeah, Florida, and fraudulent ACA enrollments led by a former insurance broker and his associate in Texas.

How did the staged auto accident insurance fraud scheme work?

The Florida defendants allegedly staged car crashes and directed participants to a medical clinic where false injury claims were filed to collect fraudulent insurance payouts.

What role did the former Florida insurance broker play in the major insurance fraud schemes?

Cory Lloyd, a former licensed broker, was accused of manipulating ACA enrollments by falsifying application details and bribing homeless individuals to generate commission payments.

How much money was involved in the ACA enrollment insurance fraud scheme?

Federal prosecutors reported that the ACA-related insurance fraud scheme resulted in over $161 million in fraudulent government payouts.

What is an insurance fraud investigation?

An insurance fraud investigation looks into whether someone intentionally lied, staged an incident, or submitted false information to collect benefits they weren’t entitled to. Investigators focus on uncovering how insurance fraud schemes are carried out, reviewing claims, interviewing witnesses, examining financial records, and comparing statements to physical evidence such as bodycam footage or crash reports.

Why is insurance fraud a crime?

Insurance fraud is treated as a crime because it drains billions from carriers, increases premiums for honest policyholders, and often involves organized insurance fraud schemes that put people at risk—such as staged car crashes or falsified medical treatments. States like Florida aggressively prosecute these cases to deter repeat offenders and protect the integrity of insurance systems.

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