Former Johnson Co. insurance agent pleads guilty to fraud charges

(Gray Media)
Published: Jan. 23, 2021 at 4:07 PM CST
Email This Link
Share on Pinterest
Share on LinkedIn

OLATHE, Kan. (WIBW) - A former Johnson Co. insurance agent has pleaded guilty to fraud charges and agreed to pay restitution.

Kansas Attorney General Derek Schmidt says a former Johnson County insurance agent pleaded guilty to insurance fraud charges on Wednesday and agreed to repay almost $86,000 in restitution.

According to AG Schmidt, Armond R. Peghee, 42, pleaded guilty in Johnson Co. 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. He said Peghee also agreed to pay $85,897.87 in restitution. He also mentioned that Johnson Co. District Court Chief Judge Thomas Kelly Ryan accepted the plea agreement and set a sentencing date for March 17.

AG Schmidt said an investigation by the Kansas Insurance Department determined that Peghee engaged ina 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 of the policies and that customers were unaware of the policies and the premiums went unpaid. He said the policies were eventually canceled for nonpayment, but investigators found Peghee kept the commissions.

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

Copyright 2021 WIBW. All rights reserved.