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Former Kansas insurance agent sentenced to probation, almost $86,000 in restitution

New IdentityTheft Scam

OLATHE, Kan. (WIBW) – A former Johnson Co. insurance agent has been sentenced to probation and a hefty restitution payment.

Kansas Attorney General Derek Schmidt says a former Johnson Co. insurance agent has been sentenced to 24 months of probation on insurance fraud charges and ordered to pay almost $86,000 in restitution.

According to Schmidt, Armond R. Peghee, 42, pleaded guilty in January in Johnson Co. District Court to one count of insurance fraud, one count of theft, one count of an unlawful act with a computer and three counts of identity theft. He said Peghee also agreed to pay $85,897.87 in restitution. He said Johnson Co. District Court Chief Judge Thomas Kelly Ryan sentenced Peghee to the terms of the plea agreement reached in January, and imposed an additional $5,000 fine.

AG Schmidt said an investigation by the Kansas Insurance Department found that Peghee was part of a fraudulent scheme where he submitted false applications for insurance policies for his customers without their knowledge. He said Peghee would get the commission for the sale, but the customers were unaware and premiums for said policies went unpaid. He said the policies were eventually canceled for nonpayment, but Peghee kept the commissions.

Schmidt said the case was prosecuted by Assistant Attorney General Paul Brothers of the Fraud and Abuse Litigation Division in his office.

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Source: on 2021-03-20 17:56:15

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