The executive vice president of an insurance brokerage firm pleaded guilty to his role in a scheme to submit fraudulent applications to enroll individuals in ACA plans.
The purpose of the scheme was to obtain millions of dollars in commission payments from the insurance company that operated the ACA plans, according to an April 18 Justice Department news release. The federal government paid at least $133.9 million in subsidies for fraudulently enrolled beneficiaries.
Dafud Iza, 54, of Florida, pleaded guilty to one count of major fraud against the United States, according to the release. Mr. Iza was the executive vice president of the insurance brokerage firm, which is unnamed in court documents.
The Justice Department said the scheme involved submitting fraudulent applications for individuals whose incomes did not meet the minimum eligibility requirements for the subsidies. Mr. Iza and his accomplices targeted vulnerable, low-income individuals and used deceptive marketing practices to enroll them in subsidized plans.
Mr. Iza faces up to 10 years in prison, according to the release.
