According to the U.S. Department of Justice, the insurance broker and his co-accused vice president targeted people with homelessness, unemployed, mental health and substance abuse issues in a scheme that earns fees from fraudulent registrations in Affordable Care Acts.
The scheme involved filing a false application to individuals who were not eligible for grants offered for health insurance plans offered through the federal market. According to a media release, the federal government has paid at least $133 million in grants to fraudulently registered individuals.
Dafud Iza, 54, of Pembroke Pines, Florida, is facing the biggest penalty in a decade-old prison after committing one major fraud charge against the US. He has not been declared yet.
The names of IZA securities companies are not included in court records. According to his LinkedIn profile, he was an executive at Fiorella Insurance Agency in Stuart, Florida until 2024.
Hundreds of homeless people in Florida may have been signed up for a Zero Premium Health Plan by agents and brokers seeking committees through the Affordable Care Act market, KFF Health News Survey found.
The policies sold to them often included out-of-pocket, deductions and other out-of-pocket costs that they couldn’t afford.
“This type of scam has been wreaking havoc in our community for years. The most vulnerable people have no longer access to healthcare by registering for a 0-month premium with a deductible plan,” said Katie Roders Turner, executive director of the Tampa nonprofit that helps low-income residents access free or low-cost care. “This often makes them ineligible for community safety net programs.
The scheme also involved “street marketers,” who provided individuals with bribes to register in a subsidized health plan, according to a statement from the Department of Justice. These enrollees were instructed on how to fill out the application to maximize the grants paid by the government, and marketers provided addresses and social security numbers that did not match the applicant.
Navigators covering the Florida Navigator Program have supported fraudulent registrations, including the process of filing appeals to the federal health insurance market for fraudulent activities, says program director Xonjenese Jacobs.
Isa, who lives in Pembroke Pines, introduced her appeal for comments to the FT. Lauderdale Federal Criminal Attorney David Joff.
“We’ve been his biggest long-term concern to enter into this plea,” Joff said. “He accepts responsibility for his actions in the case.”
