Ex-State Farm Agent Changes Plea in Kansas Fraud Case

A former Wichita, Kansas, insurance agent accused of defrauding policyholders has struck a deal with prosecutors for a 42-month prison sentence.

Jason Matthew Pennington pleaded guilty Tuesday to two counts of wire fraud and one count of bank fraud.

Pennington admitted as part of his plea agreement that he defrauded policyholders, including Marlene Brown, a Wichita teacher and philanthropist who died in 2009.

The former State Farm insurance agent acknowledged he devised a scheme whereby he would forge signatures of policyholders and change addresses of their policies. He would then fraudulently take withdrawals against the policies and cash the money for himself. He also admitted lying to State Farm when questioned about a check that was being mailed to his Wichita office.

Sentencing was set for Nov. 11 in Wichita.