Insurance Agent Convicted for Mortgage Fraud

admin —  February 2, 2010 — Leave a comment

Ron Brown, a former Kansas City, Kansas, insurance agent has been convicted of insurance and mortgage fraud activities.

Brown was indicted by a federal grand jury in December 2007 for allegedly issuing certificates of insurance for mortgage applications that he knew were fraudulent. Prior to that, Kansas Insurance Commissioner Sandy Praeger issued an emergency Cease and Desist Order for any insurance activities for Brown, his wife Deatrice, and the Brown Insurance Agency.

Brown was convicted January 6, 2010, in federal court on wire fraud and money laundering counts. He was sentenced to serve 15 years in jail, with three years supervised probation following the incarceration, and he was ordered to pay back more than $3.1 million in restitution to his victims. Brown’s prison sentence is set to run concurrently, so he will be in jail for more than 10 years.

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

A total of 24 insurance department cases against Brown were initially provided to federal authorities then the Kansas Insurance Department added several more cases following the indictment, the latest in 2009.

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