Fraud investigation embarrasses insurance employee and former Colorado police officer

A former insurance claims adjuster has admitted to stealing more than a quarter of a million dollars from her company by filing false auto insurance claims and pocketing the money.

Colette Palin, 63, of Aurora, admitted to Travelers Insurance investigators that she made 64 fraudulent claim payments to herself, 55-year-old Shawn Brassfield, of Aurora, and 47-year-old Malee Lor, a former resident of Henderson and Commerce City.

Lor is a former officer with the Thornton Police Department, according to the Colorado Attorney General’s Office, which filed theft charges against all three last year.

In total, Palin received $268,530 between 2018 and 2020 as a result of the fraudulent claims. An internal company investigation found that several of the claims were suspicious. According to prosecutors, she admitted the fraud to company investigators.

“Palin told investigators she committed fraud to help pay her sister’s medical bills and later her own gambling debts,” the state Attorney General’s office wrote in a press release.

According to prosecutors, Brassfield received two checks from Palin in 2020 totaling $23,344. Lor received $31,495.

On Tuesday, Brassfield was sentenced to eight years’ probation and 80 hours of community service and ordered to repay the full $23,344 by the Arapahoe County District Court judge who heard the case.

Lor was sentenced in May to 10 years probation and 120 hours of community service. Like Brassfield, she will pay restitution for the amount stolen. However, Lor is currently housed in the Florida Department of Corrections.

Palin pleaded guilty last month and sentencing is scheduled for August 19.

“When people commit insurance fraud, we all have to foot the bill,” said Attorney General Phil Weiser. “Our department is committed to holding those guilty of fraud accountable. This case sends a clear message to fraudsters: If you think you can get away with fraud, think again.”

Colorado residents who suspect insurance fraud or any other type of fraud or scam are encouraged to file a complaint with the Attorney General at StopFraudColorado.gov.