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Former Johnson County insurance agent pleads guilty to fraud charges, agrees to restitution

Release Date: Jan 20, 2021

OLATHE – (January 20, 2021) – A former Johnson County insurance agent has pleaded guilty to insurance fraud charges and agreed to repay nearly $86,000 in restitution, Kansas Attorney General Derek Schmidt said today.

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.

An investigation by the Kansas Insurance Department determined that Peghee engaged in a fraudulent scheme where he 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.

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