Wednesday, October 21st, 2026 — A Texas insurance broker who collected customer premiums without purchasing their requested policies has been sentenced to more than 13 years in federal prison. Clayton Lloyd Iley, 41, of Stephenville, also agreed to forfeit more than 90 exotic and collector vehicles acquired through a fraud scheme involving fictitious investments, identity theft and misappropriated insurance payments.

Iley operated Clayton Texas Legacy Insurance Group in Cross Plains, Texas, offering home, auto, life, health, farm and commercial insurance. According to federal prosecutors, he accepted premium payments from certain customers but failed to obtain their policies, diverting the money to personal expenses and other fraudulent activities.

From January 2020 through May 2026, Iley also operated a fictitious investment program that he claimed was connected to the U.S. Department of Defense. He persuaded victims to invest in a nonexistent loan program for private military contractors, collecting more than $2 million.

Federal investigators found that Iley used victims' personal information to obtain credit cards without their authorization. He then routed money through business accounts and used proceeds from the scheme to finance personal purchases, including his extensive automobile collection.

Among the vehicles identified for federal forfeiture are Lamborghini Aventadors and Huracans, Ferrari 488s, three Maserati MC20s, a Dodge SRT Viper, a Porsche Taycan and several military vehicles. Federal authorities have secured a preliminary forfeiture order covering 17 vehicles identified in the Justice Department's announcement. Proceeds from their sale will help fund restitution for victims.

Iley pleaded guilty June 17 to wire fraud and aggravated identity theft. U.S. District Judge Mark Pittman sentenced him Oct. 1 to 160 months in prison.

For insurance carriers and claims adjusters, the diverted premium payments present a potential coverage problem. Customers who paid the brokerage may have believed they were insured despite never receiving valid policies. The Justice Department has not identified any specific insurance claims arising from the missing coverage.

The FBI, Texas Rangers, Texas Department of Public Safety and Stephenville Police Department investigated the case.