Former Kansas agent sent to jail, to pay $3.1 million in fraud case

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A former Kansas City, Kan., insurance agent was sentenced to 15 years in jail, three years of supervised probation and must pay more than $3.1 million in restitution for his role in an insurance and mortgage fraud scheme.

Ron Brown was convicted in federal court Jan. 6 on wire fraud and money laundering counts, according to the Kansas Insurance Department. The department assisted federal authorities in his conviction, providing information from more than 30 cases involving the former agent, the state agency said.

In December 2007, a federal grand jury indicted Brown for allegedly issuing certificates of insurance for mortgage applications he knew to be fraudulent. Before that indictment, Kansas Insurance Commissioner Sandy Praeger issued an emergency cease and desist order for any insurance activities for Brown, his wife Deatrice Brown and the Brown Insurance Agency in Kansas City.

“The Kansas Insurance Department’s involvement in this case is a good example of state-federal cooperation when it comes to fighting fraud,” Praeger said in a statement. “We gathered information that proved valuable in producing a sentence that should make other potential criminals think twice.”

Brown’s prison sentence is set to run concurrently, so he will be in jail for more than 10 years, according to the department.

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