Kansas Insurance Agent to Repay $86K After Guilty Plea

January 21, 2021

A former Kansas insurance agent from Johnson County has pleaded guilty to insurance fraud charges and agreed to repay nearly $86,000 in restitution, the state’s attorney general’s office reported.

Kansas Attorney General Derek Schmidt said Armond R. Peghee, 42, pleaded guilty in Johnson County District Court to one count of fraudulent insurance act, one count of theft, one count of unlawful acts concerning computers, and three counts of identity theft. Peghee also agreed to repay $85,897.87 in restitution.

Johnson County District Court Chief Judge Thomas Kelly Ryan accepted the plea agreement and set a sentencing date of March 17.

The AG’s office reported that a Kansas Insurance Department investigation found that Peghee had submitted false applications for insurance policies for his customers without his customers’ knowledge. Peghee would receive the commission for the sale of the policies. The customers were unaware of the policies and the premiums went unpaid. The policies were eventually canceled for nonpayment, but investigators found Peghee kept the commissions.

The case was prosecuted by Assistant Attorney General Paul Brothers from of the Fraud and Abuse Litigation Division in Schmidt’s office.

Source: Kansas Attorney General’s Office

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