Two Men Face Prison for $161M Obamacare Fraud Scheme

Two men are facing serious prison time after allegedly orchestrating a $161.9 million health insurance fraud scheme. Prosecutors say they fraudulently enrolled individuals in Affordable Care Act (ACA) plans using falsified income details to qualify ineligible applicants for subsidies. This allowed them to collect millions in commissions from insurance companies.

The indictment claims they targeted vulnerable populations, including those experiencing homelessness and unemployment, using deceptive sales tactics. They allegedly hired "street marketers" who, in some cases, bribed individuals to enroll and coached them on how to provide false information. As a result, many unsuspecting enrollees faced disruptions in their medical care when their ineligibility was discovered.

Both individuals are charged with conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the U.S., and money laundering. If convicted, each could face up to 20 years in prison for conspiracy and wire fraud charges, five years for conspiracy to defraud the U.S., and 10 years for each money laundering charge. The total amount of fraudulent subsidies is estimated at $161.9 million.