State Farm is an old, reputable company with some very clever commercials on television. One State Farm agent in Wichita, Kansas, however, did not live up to the company’s high standards. This State Farm agent crossed the line from legal to illegal on at least three different occasions.
In the first instance he acquired some wealthy new clients after their previous State Farm agent retired. They purchased a life insurance policy from him valued at $3.4 million. It was issued by a company affiliated with State Farm.
The rogue agent then sent a fax to the company requesting a loan of $105,000 on the clients’ new life insurance policy. He forged the signature of one of the clients to get the loan.
Retired public school teacher
In the second swindle, the State Farm agent, by now out of control, was there for a retired teacher and administrator with the Wichita public schools. The longtime teacher bought a life insurance policy from the agent valued at $1.3 million.
The agent without a conscience then contacted State Farm and changed the address on the teacher’s insurance policy to his business address. He then sent a fax to State Farm making a withdrawal of $278,250 on the policy. He again forged a client’s signature to get at the money without her knowledge.
When State Farm called him to ask why the money was to be sent to his office instead of to the teacher’s home, the agent lied and told them she was his mother-in-law.
Line of credit application
Swindle number three: In February 2010, the agent applied for a line of credit from State Farm Bank. In order to qualify for the credit, he failed to mention to the bank that he was obligated to pay $5,000 a month in child support and alimony to his first wife. He also falsely reported that his second wife was receiving an annual salary as an employee of his insurance office.
Insurance agent Jason Matthew Pennington, 43, of Wichita, was sentenced in January 2015 to 42 months in federal prison for stealing from his clients. He admitted the crimes occurred while he was an agent working for State Farm.