A former Wichita, Kan., insurance agent accused of defrauding policyholders struck a deal with prosecutors for a 42-month prison sentence.
Pleading guilty on Aug. 5 to two counts of wire fraud and one count of bank fraud, Jason Matthew Pennington admitted 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. 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 took withdrawals against the policies and cashed the money for himself. He also admitted lying to State Farm when questioned about a check being mailed to his office.
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