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Former insurance agent must repay $86,000 after pleading guilty to fraud

Former insurance agent must repay $86,000 after pleading guilty to fraud

A former insurance agent in Johnson County, KS has pleaded guilty to charges of insurance fraud, and has been ordered to pay nearly $86,000 in restitution.

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

WIBW reported that Peghee’s plea agreement was accepted by Johnson County District Court judge Thomas Kelly Ryan, and that a sentencing date was set for March 17, 2021.

Attorney General Schmidt said that an investigation by the Kansas Insurance Department found that Peghee was involved in an insurance fraud scheme. In the scheme, Peghee submitted false applications for insurance policies for his unwitting customers. Peghee would then claim the commission for the sale of the policies, and would continue to keep his customers in the dark about the policies and the premiums that went unpaid, investigators noted. The policies were eventually canceled for nonpayment, but investigators found that Peghee still managed to keep the commissions.

Source : Insurance Business | Insurance News

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