View this article online: https://www.insurancejournal.com/news/midwest/2014/08/07/337067.htm
A former Wichita insurance agent accused of defrauding policyholders has struck a deal with prosecutors for a 42-month prison sentence.
Jason Matthew Pennington pleaded guilty on Aug. 5 to two counts of wire fraud and one count of bank fraud.
Pennington admitted as part of his plea agreement that he defrauded policyholders, including Marlene Brown, a Wichita teacher and philanthropist who died in 2009.
His insurance license was suspended by state regulators in 2010 during a federal probe into his activities. In June 2013 federal prosecutors charged Pennington with stealing nearly $2 million from policyholders.
The former State Farm insurance agent acknowledged he devised a scheme whereby he would forge signatures of policyholders and change addresses of their policies. He would then fraudulently take withdrawals against the policies and cash the money for himself. He also admitted lying to State Farm when questioned about a check that was being mailed to his Wichita office.
Sentencing was set for Nov. 11 in Wichita.
Related stories:
Kansas Suspends Insurance Agent’s License Amid Federal Probe
Ex-Kansas Insurance Agent Accused of Stealing $2M
Trial Expected in Ex-Kansas Insurance Agent Theft Case