Florida Insurance Broker Pleads Guilty ACA Fraud Scheme
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. Stay informed on the latest developments in insurance fraud and healthcare regulation at JacobiJournal.com. 🔎 Read More from JacobiJournal.com:
Former Texas Insurance Broker Charged in Alleged Fraud Scheme
April 17, 2025 | JacobiJournal.com — A former Texas insurance broker is facing felony theft charges after allegedly collecting payments from clients for policies he never purchased. Edgar Peralta, of Peralta Insurance Brokerage LLC, turned himself in to Friendswood Police on April 10, 2025. The former Texas insurance broker is charged with theft, a state jail felony, filed by the Galveston County District Attorney’s Office. Fraud Uncovered After Traffic Stop Friendswood Police began investigating Peralta on March 3, 2025, after receiving a fraud complaint from a longtime client. The client had used Peralta for several years to secure homeowner, auto, and flood insurance policies. In May 2024, Peralta reportedly advised the client to prepay for policies covering the upcoming year, promising significant cost savings. However, after a January 2025 traffic stop, the client discovered their auto insurance was invalid. Upon contacting the insurer, they learned the policy had been canceled for non-payment. Further inquiries revealed the same issue with both the homeowners and flood policies. The client provided wire transfer records showing they had paid Peralta directly. However, investigators believe he never forwarded the funds to the insurance companies. License Revoked Months Earlier The situation escalated when the client discovered that Peralta’s insurance license was revoked in June 2024—months before he accepted their latest payments. This revelation raised serious concerns about how the former Texas insurance broker continued operating despite being legally barred from conducting insurance transactions. According to industry regulations, once a license is revoked, an agent is prohibited from soliciting, selling, or managing any insurance policies. However, investigators allege Peralta ignored these restrictions and continued to present himself as a legitimate broker. This not only violated state insurance laws but also placed clients at risk of being uninsured without their knowledge. Authorities say this pattern of behavior underscores a larger issue in the insurance industry—how revoked agents can exploit personal relationships with clients to commit fraud. For victims, the trust built over years of service made it harder to suspect wrongdoing until financial harm had already occurred. Ongoing Investigation Friendswood PD has referred the case to the Texas Department of Insurance, which has launched its own investigation into the former Texas insurance broker and his alleged fraudulent activities. Authorities are reviewing financial records, client communications, and policy documentation to determine the full extent of potential violations. Additional charges may follow based on their findings, especially if more victims step forward with similar claims of premium payments that never resulted in active coverage. The former Texas insurance broker remains under investigation, and authorities urge any other potential victims to come forward immediately to aid in the ongoing case. If you suspect fraudulent activity by an insurance agent or broker, report it immediately through the Texas Department of Insurance’s official fraud reporting portal to protect yourself and other consumers. Source: Friendswood Police Department FAQs: Former Texas Insurance Broker Why was the former Texas insurance broker charged with theft? Authorities allege he collected payments for insurance policies he never purchased and kept the funds. When was the former Texas insurance broker’s license revoked? His license was revoked in June 2024, months before he allegedly continued selling insurance policies. How can clients report fraud by a former Texas insurance broker? Victims can contact the Texas Department of Insurance or local law enforcement to file a report. Stay ahead of insurance fraud news by following updates on JacobiJournal.com. 🔎 Read More from JacobiJournal.com:
American Labor Alliance Execs Convicted in Multi-Million Dollar Fraud
April 15, 2025 | JacobiJournal.com — American Labor Alliance Execs Convicted: After a 19-day trial, a federal jury convicted three Fresno defendants of orchestrating a sweeping fraud involving fake pension plans, bogus workers’ compensation coverage, and sham hardship exemptions. U.S. Attorney Phillip A. Talbert announced the verdict Tuesday. Marcus Asay, 68, Antonio Gastelum, 53, and their business—Agricultural Contracting Services Association, doing business as American Labor Alliance (ALA)—ran the schemes from 2011 through 2019, targeting thousands of workers and businesses across the country. Fraudulent Retirement Plan Misled Over 3,000 Workers Asay, founder and chairman of ALA, and Gastelum, who held multiple executive titles, convinced over 3,000 individuals to invest in a fake 401(k) retirement plan. Instead of managing the funds properly, the defendants funneled contributions into personal and business expenses. This included luxury dining, rare coins, online companion services, and rent for Asay’s lakefront home in Fresno. American Labor Alliance Execs To conceal the misappropriation, the defendants used funds from another fraudulent operation—fake workers’ compensation coverage—to cover supposed pension obligations. Losses from the retirement scheme exceeded $750,000. Workers’ Compensation Scam Involved Fake Insurance Certificates The second scheme involved false promises of workers’ compensation coverage. ALA told customers in California and other states that major national insurers backed their policies. In reality, those insurers were never involved. To maintain the illusion, ALA issued counterfeit certificates and policy declarations, allowing businesses to submit fraudulent documents to clients and regulators. When investigations began, ALA urged customers not to cooperate with authorities. The total fraud in this area exceeded $2.25 million. Hardship Exemptions Sold Under False Pretenses Asay and ALA also ran a third grift by charging individuals for bogus exemptions from the Affordable Care Act’s insurance mandate. While they promised to shield buyers from the ACA’s shared responsibility payment, the exemptions were neither valid nor legal. Only government agencies can issue such exemptions—and they’re free for qualified individuals. Sentencing and Potential Penalties The three defendants face sentencing on October 21, 2024, before U.S. District Judge Dale A. Drozd. Each fraud conviction carries up to 20 years in prison, with fines ranging from $250,000 to $500,000 per count. ALA could be fined up to $8.5 million. The case was investigated by multiple federal agencies, including the FBI, IRS Criminal Investigation, and Department of Labor, with prosecution led by Assistant U.S. Attorneys Michael Tierney, Joseph Barton, and Stephanie Stokman. Source: U.S. Department of Justice – DOJ Press Release FAQs: American Labor Alliance Execs Convicted Fraud Case What schemes were the American Labor Alliance execs convicted of? The American Labor Alliance execs convicted were found guilty of running fraudulent pension plans, fake workers’ compensation coverage, and bogus ACA exemptions. How many victims were impacted by the American Labor Alliance execs convicted case? Over 3,000 workers and numerous businesses nationwide were affected by the schemes tied to the American Labor Alliance execs convicted verdict. What penalties do the American Labor Alliance execs convicted face? The American Labor Alliance execs convicted face up to 20 years in prison per fraud count, millions in fines, and restitution for defrauded victims. Stay informed about major fraud cases and workers’ compensation enforcement at JacobiJournal.com. 🔎 Read More from JacobiJournal.com:
Former Girardi Keese Accountant Sentenced for Fraud
April 15, 2025 | JacobiJournal.com — Former Girardi Keese Accountant: Kamon ordered to pay nearly $9M in restitution for role in law firm’s collapse. A former top accountant at the now-defunct Girardi Keese law firm has been sentenced to over 10 years in prison for defrauding both the firm and its clients. The ruling delivers a sharp blow to those involved in one of California’s most notorious legal scandals. Court Sentences Kamon to Over 10 Years Christopher Kazuo Kamon, 51, received a 121-month federal prison sentence from Judge Josephine L. Staton. The court also ordered him to pay nearly $9 million in restitution. Authorities arrested Kamon in The Bahamas in late 2022. He later pleaded guilty to two counts of wire fraud in October 2024. Judge Staton called Kamon a central player in a “web of deceit and manipulation.” She emphasized that his actions deepened the harm inflicted on vulnerable clients. Millions Stolen from Settlement Funds Kamon worked alongside Tom Girardi, 85, to steal from injured clients over a decade. One of the worst cases involved a burn victim from the 2010 San Bruno gas pipeline explosion. Girardi had secured a $53 million settlement. However, he told the client it was only $7 million. Rather than protect the client’s funds, Kamon helped reroute the money to cover law firm expenses. He and Girardi also used it to pay previous victims whose own settlements had already been misappropriated. To keep the deception going, they sent small “interest” checks and false updates about nonexistent accounts. Kamon Profited from the Scheme Kamon didn’t just help embezzle funds—he also used the firm’s money to enrich himself. He set up fake vendors and submitted fraudulent invoices to pay for renovations at his homes in Encino and Palos Verdes. In one outrageous move, he funneled hundreds of thousands of dollars to a female companion, including a $20,000 monthly stipend. She had no ties to the law firm. These payments came directly from the firm’s operating accounts. Kamon’s Actions Accelerated the Firm’s Collapse Federal officials said Kamon’s misconduct helped accelerate the law firm’s downfall. Girardi Keese filed for bankruptcy in December 2020 and dissolved by early 2021. The State Bar of California disbarred Girardi in July 2022. A jury recently found him guilty of multiple counts of wire fraud. Meanwhile, Kamon, Girardi, and former Girardi Keese lawyer David R. Lira now face a second criminal trial in Chicago this July. Federal Authorities Vow Continued Accountability U.S. Attorney Bill Essayli stated, “Kamon enabled Girardi’s scheme for nearly 20 years. Ironically, his own lies helped bring it to an end.” IRS Special Agent Tyler Hatcher added, “Kamon treated the firm’s finances like a personal piggy bank. Our teams traced every dollar and helped bring him to justice.” The IRS Criminal Investigation Division and the FBI led the investigation. Prosecutors continue to recover assets for victims of the scheme. Source: U.S. Department of Justice FAQs: Former Girardi Keese Accountant Sentenced What was the sentence in the Former Girardi Keese accountant sentenced case? Christopher Kazuo Kamon received over 10 years in federal prison and was ordered to pay nearly $9 million in restitution. How did the Former Girardi Keese accountant sentenced case impact clients? Kamon helped divert millions from client settlement funds, including money from a $53 million gas explosion settlement, worsening harm to victims. What role did Kamon play in the Former Girardi Keese accountant sentenced case? Kamon was a central figure who created fake vendors, misused firm accounts, and funneled money to personal luxuries and companions. Stay informed on high-profile legal fraud cases like the Former Girardi Keese accountant sentenced ruling. Subscribe to JacobiJournal.com today for trusted updates and expert analysis. 🔎 Read More from JacobiJournal.com:
Labor Organization Owners Sentenced in Union Fraud Scheme
April 14, 2025 | JacobiJournal.com – Labor organization owners sentenced in a high-profile union fraud case, shining a spotlight on corruption within labor institutions and the urgent need for accountability. Two Southern California labor organization owners will serve time in federal prison after admitting to a fraud scheme that embezzled more than $500,000 in union funds. Their sentencing underscores a broader crackdown on union-related financial crimes and highlights how misuse of worker contributions erodes trust in organizations designed to protect employees. This case marks another aggressive move by federal authorities to confront white-collar corruption in labor institutions. Officials emphasized that the ruling sends a message to leaders of labor groups nationwide: safeguarding union funds is a fiduciary duty, and those who breach it for personal gain will face serious legal consequences. Fraud Scheme Diverted Union Funds for Luxury and Travel According to the U.S. Department of Justice, the defendants ran a labor nonprofit allegedly dedicated to protecting workers’ rights. However, investigators uncovered that the organization was used as a front to finance personal luxuries. They diverted funds toward extravagant travel and high-end purchases, betraying the trust of union members in the process. Labor Organization Owners Sentenced Falsified Invoices and Shell Companies Used to Conceal Theft To mask the scheme, the pair falsified financial records, created fake invoices, and routed money through shell companies. These tactics were aimed at avoiding detection while continuing to misuse union funds. Prosecutors emphasized the significance of the betrayal, noting that such actions undermine confidence in legitimate labor movements. Federal Sentencing Underscores Severity Following a thorough investigation and prosecution, both individuals received multi-year federal prison terms and were ordered to pay restitution. The court’s decision sends a firm message: those who exploit positions of public trust, especially within labor organizations, will face serious consequences. Heightened Scrutiny for Union Oversight This case is part of a broader federal effort to increase oversight of labor organizations. As government agencies ramp up enforcement, unions are being urged to adopt tighter compliance measures and improve financial transparency. Employers and union representatives should review internal controls regularly to avoid costly liability or legal exposure. For more information on federal enforcement and union oversight, visit the U.S. Department of Justice – Office of Labor-Management Standards (OLMS). FAQs: Labor Organization Owners Sentenced What crimes were the labor organization owners sentenced for? They were sentenced for embezzling over $500,000 in union funds, falsifying invoices, and using shell companies to conceal the theft. How long will the labor organization owners sentenced serve in prison? Both defendants received multi-year federal prison terms along with restitution orders for the stolen union funds. Why is the labor organization owners sentenced case significant? It highlights the federal government’s aggressive stance on union fraud and underscores the importance of financial transparency in labor organizations. Stay informed about union fraud, compliance enforcement, and insurance-related legal actions at JacobiJournal.com. Subscribe for updates that matter to employers, investigators, and compliance professionals. 🔎 Read More from JacobiJournal.com:
Women Charged With Fraud After SUV Found in Mississippi River
April 8, 2025 | JacobiJournal.com — Women Charged With Fraud: A routine stolen vehicle report took a surprising turn on March 21, when authorities discovered a partly submerged SUV in the Mississippi River—the same one reported stolen just moments earlier. Suspicious Discovery in the Water After receiving the initial 911 call about the stolen Ford Expedition, a second call came in about a vehicle found in the river near a landing. Local responders, including the Warren County Sheriff’s Office, fire-rescue crews, and search teams, rushed to the scene. Using a skiff launched from a nearby boat, authorities conducted a thorough search. However, they found no one inside the SUV or in the surrounding waters, according to the Vicksburg Daily News. Fraud Uncovered Soon after, investigators confirmed that the submerged Ford Expedition belonged to Heather Kay McCoy, the woman who had reported it stolen. On April 1, law enforcement arrested McCoy and charged her with insurance fraud. Authorities also arrested Amber Spencer, whom they identified as an alleged accomplice. She was charged with conspiracy to commit a felony. Next Steps in the Case Although officials did not release details on how they quickly uncovered the fraud attempt, both women posted bail. The case is now pending a grand jury review, expected in the coming weeks. Learn more about how Mississippi investigates and prosecutes insurance fraud. FAQs: Women Charged With Fraud What happened in the case of the women charged with fraud in Mississippi? Authorities discovered a submerged SUV in the Mississippi River, leading to insurance fraud charges against two women. Who were the women charged with fraud, and what are the accusations? Heather Kay McCoy was charged with insurance fraud after reporting her own SUV stolen, while Amber Spencer was charged with conspiracy. What happens next in the women charged with fraud case? Both women posted bail, and the case is scheduled for grand jury review in the coming weeks. Stay updated on major fraud cases and accountability news. Subscribe to JacobiJournal.com for expert coverage of fraud, justice, and public integrity stories. 🔎 Read More from JacobiJournal.com:
Pennsylvania Woman Charged for Fraudulent Claim on TV
April 4, 2025 | JacobiJournal.com — Pennsylvania Woman Charged: A woman from Pennsylvania now faces insurance fraud charges after claiming wind damage to her barn, even though a reality TV crew had already taken it apart. TV Deal Leads to Investigation Tracey Jeffreys, 63, from the Milton area, initially struck a deal with the Discovery Channel’s “Barnwood Builders”. The show planned to dismantle her old barn and use the wood in a reconstruction project. However, after inspecting the structure in 2022, the crew found part of the wood was infested with powder post beetles. As a result, they decided to salvage only some usable sections, and Jeffreys received $20,000 for the materials. $100K Insurance Claim Raises Suspicions Soon after the transaction, Jeffreys submitted a $100,000 claim to Donegal Mutual Insurance, stating that strong winds had knocked down part of the barn. Yet, an insurance adjuster couldn’t verify that wind caused the damage. Weather Records and Witnesses Contradict the Claim Investigators then checked National Oceanic and Atmospheric Administration (NOAA) data. On the day of the supposed damage, wind speeds averaged just 7 mph, far too low to destroy a barn. In addition, neighbors reported seeing the TV crew take the structure apart. The show’s team also confirmed they had dismantled the barn as planned. Pennsylvania Woman Charged Jeffreys Tries to Backtrack When confronted, Jeffreys attempted to withdraw her claim. She claimed she had forgotten to tell the crew not to remove the section she now said was damaged by wind. The Pennsylvania Attorney General’s Office has charged her with insurance fraud, and she was released on bail. For readers who want to learn more about fraud enforcement in Pennsylvania, refer to the Pennsylvania Attorney General’s Insurance Fraud Section: Pennsylvania Attorney General – Insurance Fraud. FAQs: Pennsylvania Woman Charged in Insurance Fraud Why was the Pennsylvania woman charged with insurance fraud? She was charged after investigators discovered her $100K insurance claim conflicted with TV crew records and NOAA weather data. How did the TV show play a role in the case? The Discovery Channel’s Barnwood Builders dismantled her barn before the alleged storm, exposing her fraudulent claim. What evidence proved the Pennsylvania woman charged was lying? NOAA reports showed low wind speeds that day, and witnesses confirmed the TV crew—not a storm—removed the barn. What penalties could the Pennsylvania woman charged face? If convicted, she could face fines, restitution, and possible jail time under Pennsylvania’s insurance fraud laws. Stay informed about major fraud prosecutions and legal updates like this case. Subscribe to JacobiJournal.com for weekly fraud and law enforcement news. 🔎 Read More from JacobiJournal.com:
Iowa Man Gets 10 Years for Fake Rolex Theft Insurance Scam
April 2, 2025 | JacobiJournal.com — An Iowa resident has been sentenced to 10 years in prison for orchestrating a fake Rolex theft insurance scam. Bryce Douglas Murphy, 33, of Peosta, pleaded guilty to Insurance Fraud and Fraudulent Practice, both Class D felonies. His conviction followed an investigation by the Iowa Insurance Division’s Fraud Bureau, which uncovered a repeated pattern of false claims. Bryce Douglas Murphy, 33, of Peosta, pleaded guilty to Insurance Fraud and Fraudulent Practice, both Class D felonies. Investigators from the Iowa Insurance Division’s Fraud Bureau uncovered the scam, leading to his conviction. The Counterfeit Rolex Scheme Murphy reported that two Rolex watches were stolen from his hotel room while attending an NFL game, supporting the claim with falsified receipts and documents. Investigators later determined that the supposed luxury watches were counterfeit and that the paperwork had been forged. Further inquiry revealed that this was not Murphy’s first attempt. In 2019, he filed a nearly identical claim with a different insurer and fraudulently obtained nearly $10,000. This history of deception ultimately strengthened the case against him. Authorities arrested Murphy on June 12, 2023. Sentencing and Penalties After entering a guilty plea, Murphy was sentenced to 10 years in state prison and ordered to pay $2,395 in fines. Authorities noted that this sentence reflects Iowa’s commitment to deterring fraudulent insurance activity. The Iowa Insurance Division emphasized that insurance fraud increases costs for all consumers and that its Fraud Bureau will continue aggressively investigating similar cases. Why This Case Matters Cases like the fake Rolex theft scam highlight how fraud undermines trust in the insurance system. Law enforcement agencies across the U.S. are stepping up prosecutions of individuals attempting to profit from fraudulent schemes, especially those involving counterfeit luxury goods. Source: Iowa Insurance Division FAQs: Fake Rolex Theft What is a fake Rolex theft insurance scam? A fake Rolex theft scam occurs when someone files an insurance claim for luxury watches that are either counterfeit or never stolen, using fabricated receipts and false reports. What penalties did the Iowa man face for the fake Rolex theft scheme? He was sentenced to 10 years in prison and ordered to pay $2,395 in fines after pleading guilty to insurance fraud and fraudulent practice. How did investigators uncover the fake Rolex theft fraud? Authorities compared receipts, examined the watches’ authenticity, and discovered that Murphy had previously filed a nearly identical fraudulent claim in 2019. Why is insurance fraud involving fake Rolex thefts taken seriously? Such fraud drives up insurance costs for honest policyholders, damages insurer trust, and involves deliberate forgery and deception, making it a prosecutable felony. Stay updated on the latest fraud cases and legal actions. Subscribe to JacobiJournal.com for breaking updates and in-depth coverage. 🔎 Read More from JacobiJournal.com:
Florida’s Universal P&C Fined $4M for Inflated Hurricane Irma Claims
April 2, 2025 | JacobiJournal.com — Hurricane Irma Settlement: Florida’s Universal Property & Casualty Insurance Co. must pay a $4 million fine after a state investigation found the insurer submitted ineligible claims to Florida’s Hurricane Catastrophe Fund (Cat Fund). The settlement prevents Universal from collecting more than $30 million in disputed reimbursements tied to Hurricane Irma. Investigation and Settlement Florida Attorney General James Uthmeier announced the settlement on Tuesday, citing findings from a whistleblower lawsuit. Investigators discovered that Universal had backdated claims from Hurricane Irma in 2017 to increase reimbursements. “Insurance fraud harms Floridians, and this case ensures that the Cat Fund only pays for legitimate storm-related losses,” Uthmeier said. Universal, based in Fort Lauderdale, denied any wrongdoing. Company officials argued that the claims had gone through the Cat Fund’s standard review process over six years. “The Cat Fund conducts a thorough commutation process, evaluating loss data to determine final settlements,” Universal stated. “This process applies to all insurers and led to a mutual agreement.” Whistleblower Lawsuit and Legal Costs A former Universal employee filed the whistleblower lawsuit in 2020, two years after leaving the company. Universal claimed the whistleblower misunderstood reporting procedures, leading to inaccurate allegations. The lawsuit, filed in Leon County, remains sealed. Florida’s Universal P&C Fined Under the settlement terms, Universal must pay $6.5 million, which includes $2.4 million in attorney fees. Universal’s Chief Strategy Officer, Arash Soleimani, framed the settlement as a mutual decision to dismiss the case and move forward. Industry Reactions and Market Impact Gina Wilson, the Cat Fund’s chief operating officer, did not comment on the settlement. However, industry insiders acknowledged that such claim adjustments are rare but not unheard of. Universal, one of Florida’s largest property insurers, explained that post-hurricane claim assessments often evolve. “Over time, insurers gain more information about losses,” Universal stated. “Some claims initially linked to hurricanes may later be classified as unrelated, while others previously omitted may be added.” The company reassessed about 1% of its Hurricane Irma claims before and during the commutation process. The storm remains Universal’s largest single loss event, with total costs rising from an initial $450 million estimate to more than $2 billion. Universal Moves Forward With the case now closed, Universal’s CEO, Stephen Donaghy, emphasized the company’s commitment to Florida policyholders. “We are pleased this review has concluded, and the state has dismissed the case,” Donaghy said. “As market reforms take effect, we look forward to providing more affordable home insurance options for consumers.” Despite the settlement, Universal Insurance Holdings’ stock remained near a five-year high, showing minimal impact from the announcement. For further details, see the Florida Attorney General’s Office announcement on insurance fraud enforcement. FAQs: Hurricane Irma Insurance Fine Why was Universal P&C fined over Hurricane Irma claims? Universal was fined $4M after investigators found the insurer had backdated Hurricane Irma claims to inflate reimbursements from Florida’s Cat Fund. How much did Hurricane Irma ultimately cost Universal P&C? Hurricane Irma remains Universal’s largest loss event, with costs exceeding $2 billion, far above the initial $450 million estimate. What role did the whistleblower lawsuit play in the Hurricane Irma settlement? A former Universal employee filed the whistleblower lawsuit, alleging the company misreported Hurricane Irma claims, leading to the state’s investigation. How does the Hurricane Irma case affect Florida homeowners today? The settlement ensures the Cat Fund pays only for legitimate Hurricane Irma claims, helping stabilize the insurance market and protect policyholders. Stay informed on major fraud cases and insurance industry updates. Subscribe to JacobiJournal.com for expert coverage delivered straight to your inbox. 🔎 Read More from JacobiJournal.com:
Miami Insurance Broker: Sentenced for Condo Premium Loan Fraud
March 28, 2025 | JacobiJournal.com — A federal judge has sentenced Miami insurance broker Heleonel “Leo” Gonzalez to 41 months in prison and ordered him to pay more than $5 million in restitution. Gonzalez defrauded a Georgia credit union by securing loans intended for condo associations’ insurance premiums and then misusing the funds for personal gain. Details of the Fraud Scheme Gonzalez, 48, owned Sharp Insurance Agency in Miami Lakes. Between 2023 and early 2024, he submitted false premium finance agreements to P1 Finance, a division of Peach State Federal Credit Union. He falsely claimed that condo associations had authorized these loans to cover property insurance premiums. Court records show that Gonzalez used these proceeds to settle personal debts and purchase property in Park City, Utah. Prosecutors highlighted that Peach State Federal Credit Union transferred around $6 million, unaware of the fraudulent representations. Miami Insurance Broker Condo Crisis Provided Cover for the Scheme Florida’s ongoing property insurance and condominium crises likely provided a cover for Gonzalez’s scheme. Condo insurance premiums and repair costs have surged, forcing many unit owners to consider relocating. Legislative changes in 2022 mandated frequent inspections and larger cash reserves, further straining associations’ finances. Prosecution and Sentencing Gonzalez pleaded guilty in November and voluntarily surrendered to the Bureau of Prisons. Prosecutors noted that his sentence was less than the maximum allowed by sentencing guidelines and fell below their recommendation. He also faces asset forfeiture, including the Park City property. Gonzalez’s Ties to Insurance Providers Records from the Florida Department of Financial Services show that Gonzalez had been an agent for Citizens Property Insurance Corp. since 2016. His appointment is set to expire in April 2025. He also held active appointments with 15 other insurers. Sharp Insurance Agency’s Current Status Despite his sentencing, Gonzalez was still listed as president on the Sharp Insurance Agency’s website as of Thursday. Source: Insurance Journal – Full Article FAQs: Miami Insurance Broker Sentencing Why was the Miami insurance broker sentenced in 2025? The Miami insurance broker, Leo Gonzalez, was sentenced for defrauding a Georgia credit union by misusing condo premium finance loans. How much restitution must the Miami insurance broker pay? Gonzalez was ordered to pay more than $5 million in restitution after his conviction. What role did the condo crisis play in the Miami insurance broker case? Florida’s condo insurance and repair cost crisis created conditions that helped conceal Gonzalez’s fraudulent scheme. Did the Miami insurance broker lose his insurance licenses? Records show Gonzalez held active appointments with Citizens Property Insurance Corp. and 15 other insurers, with expirations pending in 2025. Stay informed on insurance fraud cases and financial crime updates — subscribe to JacobiJournal.com today. 🔎 Read More from JacobiJournal.com: