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Former insurance coverage agent should repay $86,000 after pleading responsible to fraud


KS, a former Johnson County insurance agent, pleaded guilty of insurance fraud and was sentenced to pay nearly $ 86,000 in restitution.

Armond R. Peghee, 42, pleaded guilty in Johnson County District Court to a number of fraudulent insurance records, a number of thefts, a number of illegal activities involving computers, and three cases of identity theft. Kansas Attorney General Derek Schmidt said Peghee agreed to pay $ 85,897.87 in changes.

WIBW reported that Peghee’s letter of consent was accepted by Johnson District Court Judge Thomas Kelly Ryan and that a sentencing date has been set for March 17, 2021.

Attorney General Schmidt said an investigation by the Kansas Insurance Department found Peghee was involved in an insurance fraud program. As part of the program, Peghee filed bogus insurance policy applications for its ignorant customers. Peghee would then claim the commission on the sale of the policies and continue to keep its customers in the dark about the policies and the premiums that were not paid, the investigators found. The policies were eventually canceled for non-payment, but investigators found that Peghee still managed to keep the commissions.

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