AP of South Florida, a Florida-based insurance brokerage, has agreed to plead guilty to one count of major fraud against the U.S. for its role in a fraudulent ACA enrollment scheme.
In a parallel civil resolution, AssuredPartners, a national brokerage firm that was APSF’s then-parent company, agreed to pay $107 million to resolve False Claims Act allegations. Combined, the resolutions exceed $135 million, the Department of Justice said April 7.
APSF, through its highest-ranking executives, fraudulently enrolled thousands of people into fully subsidized ACA plans, generating $141.5 million in unwarranted federal subsidies. The scheme ran for about 18 months after AssuredPartners acquired APSF assets in February 2021.
APSF contracted with marketers who targeted homeless shelters, bus stops and drug treatment clinics, sometimes offering cash or gift cards to encourage enrollment. Employees then submitted applications falsely representing that the individuals would earn just above the federal poverty line to trigger the highest subsidy amounts. The company also purposefully submitted Medicaid applications designed to be denied, which generated letters used to trigger special enrollment periods.
Some individuals who were enrolled in plans that they did not qualify for lost access to Medicaid or local programs, and faced new out-of-pocket costs for HIV medication, opioid dependence treatment and mental health drugs.
APSF agreed to pay $27.6 million in criminal restitution, and a whistleblower who originally filed suit under the False Claims Act’s qui tam provisions will receive $24.3 million. APSF’s former president was convicted by a federal jury in November 2025 and sentenced to 20 years in prison for his role in the scheme. According to the DOJ, the executive began the fraud at a legacy company before continuing it at APSF following the February 2021 acquisition.
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