April 22, 2025 | JacobiJournal.com – A South Florida insurance broker has pleaded guilty to orchestrating a $134 million Affordable Care Act (ACA) fraud scheme that exploited federal health subsidies and targeted society’s most vulnerable.
Dafud Iza, 54, of Pembroke Pines, entered his guilty plea last Friday in federal court in the Southern District of Florida. He now awaits sentencing and could face up to 10 years in prison, along with a substantial restitution order.
Broker Licenses Revoked After Years in the Industry
Florida Insurance Broker: Iza previously held multiple insurance licenses in Florida, including property and casualty, temporary life, and health insurance credentials. However, the Florida Department of Financial Services confirmed all his licenses are now inactive. His appointment with Liberty Mutual Insurance expired in 2012.
Although court records did not identify his most recent employer, Iza’s LinkedIn profile listed him as Director of Operations at Compass Health Insurance in Tequesta since May 2024. Before that, he spent nearly eight years as Executive Vice President at Fiorella Insurance Agency in Stuart, Florida.
Scheme Targeted Vulnerable Populations
According to the U.S. Department of Justice, Iza and his accomplices specifically targeted low-income individuals—including those facing homelessness, job loss, or mental health and substance abuse challenges. Street-level marketers, allegedly working under Iza’s direction, offered cash incentives to entice these individuals to enroll in ACA health plans.
How the Fraud Worked
The ACA, also known as ObamaCare, provides federal tax subsidies to insurers that enroll eligible consumers. Iza’s team manipulated this system by submitting falsified applications. They exaggerated applicants’ incomes to meet subsidy requirements and sold ACA plans to individuals who didn’t qualify.
As a result, federal insurers disbursed $134 million in improper subsidies based on the false data. The scheme not only drained taxpayer funds but also compromised the integrity of a healthcare system designed to help those in genuine need.
Upcoming Sentencing and Legal Fallout
Iza pleaded guilty to felony charges related to health care fraud and could face up to a decade in prison. Federal prosecutors emphasized that restitution will be pursued, though the final amount remains undetermined.
The case underscores the ongoing risks of fraud in publicly subsidized healthcare programs—and the importance of oversight in broker-led enrollments.
Learn more about ongoing federal enforcement actions by visiting the U.S. Department of Justice – Health Care Fraud Cases.
FAQs: Florida Insurance Broker ACA Fraud Scheme
What did the Florida insurance broker plead guilty to?
The Florida insurance broker admitted orchestrating a $134 million ACA fraud scheme that exploited federal subsidies and targeted low-income, vulnerable individuals.
How did the Florida insurance broker ACA fraud scheme work?
The broker and accomplices submitted falsified applications, inflating incomes so applicants would qualify for ACA subsidies, resulting in $134 million in improper payouts.
What penalties does the Florida insurance broker face?
The broker faces up to 10 years in federal prison, restitution for the $134 million in fraudulent subsidies, and permanent revocation of all insurance licenses.
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