Fraud Crisis Exposed: $160m Aca Scam Targets Homeless, $30m Chiropractor Covid Heist, $55m Bank Schemer Locked Up!

Insurance Brokers to Pay Over $160 Million for ACA Fraud That Preyed on Homeless and Addicts

WASHINGTON – A Florida-based insurance brokerage and its former parent company have agreed to pay more than $160 million to resolve criminal and civil charges stemming from a scheme that fraudulently enrolled thousands of vulnerable individuals – including homeless people and those suffering from opioid addiction – into subsidized Affordable Care Act plans, the Justice Department announced Tuesday.

AP of South Florida, LLC (APSF), a brokerage headquartered in Florida, has agreed to plead guilty to one count of major fraud against the United States and pay $27.6 million in restitution. In a parallel civil resolution, AssuredPartners, Inc., a national partnership of insurance brokers and APSF’s then-parent company, agreed to pay $135 million to resolve False Claims Act allegations.

The announcements came as part of a press conference supporting President Trump’s Task Force to Eliminate Fraud, where officials said the department had prosecuted the theft of half a billion taxpayer dollars in a single day.

“Thanks to the leadership of President Donald Trump, the Department, working closely with the Task Force to Eliminate Fraud, is supercharging efforts to take down every fraudster and bring them to justice,” said Acting Attorney General Todd Blanche. “All those ripping off the American people are on notice.”

According to court documents, APSF, through its highest-ranking executives, targeted low-income individuals experiencing homelessness, unemployment, and mental health or substance abuse disorders. Using “street marketers” who sometimes offered cash and gift cards, the company induced vulnerable consumers to enroll in ACA plans that were fully subsidized by the federal government.

APSF submitted false applications for individuals whose income did not meet minimum requirements for subsidies. As a result, the government awarded $141.5 million in unwarranted subsidies, according to the criminal information.

The scheme caused serious harm to consumers. Some lost access to free health benefits through Medicaid or local assistance programs, leaving them facing unaffordable co-pays for HIV medication, opioid dependence treatment, and mental health drugs. One medical provider complained to APSF’s president that homeless individuals with opioid addiction were given cash to sign up and were “worse off than if they had no insurance because they are being asked to pay >$500 per month for their medications.”

APSF received commissions and other payments from insurers in exchange for enrollments. To maximize commissions, the company used misleading sales scripts, bypassed federal income verification attempts, and deliberately filed Medicaid applications in a way that guaranteed denial – allowing APSF to instead sign up consumers for subsidized ACA plans.

APSF’s former president, Cory Lloyd, was convicted at trial in November 2025 for his role in the scheme and sentenced to 20 years in prison. According to court documents, Lloyd began the fraud at a legacy entity, and after APSF acquired that entity’s assets in February 2021, he continued orchestrating the scheme as president of APSF.

“APSF defrauded the U.S. government in order to line their pockets by exploiting the vulnerable,” said FBI Director Kash Patel. “The FBI and its partners are working every day to put an end to corporate malpractice.”

“For over a year, APSF made money on the backs of vulnerable consumers and by siphoning money from a critical social safety net meant to protect working families,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The conduct was orchestrated by APSF’s highest ranking executive and was pervasive throughout the company. Open and notorious corporate frauds will not be tolerated.”

In the civil settlement, AssuredPartners agreed to pay $135 million to resolve allegations that it submitted fraudulent ACA applications from February 2021 through September 2022. The government contended that a significant portion of APSF’s fraudulently obtained revenues flowed up to AssuredPartners.

The civil case originated from a whistleblower lawsuit. The whistleblower will receive $24.3 million as their share of the recovery.

“Exploiting people in crisis to generate profit at the expense of taxpayers is unconscionable,” said Inspector General T. March Bell of the Department of Health and Human Services Office of Inspector General.

APSF’s change of plea hearing will be scheduled later. The company faces sentencing before a federal district judge.