Fraud investigation snares insurance company employee, former Colorado police officer

A former insurance claims adjuster has confessed to stealing more than a quarter 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 issued 64 fraudulent claims payment to herself, 55-year-old Shawn Brassfield of Aurora, and 47-year-old Malee Lor, a former Henderson and Commerce City resident.

Lor is a former Thornton Police Department officer, according to the Colorado Attorney General's Office which brought felony 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 flagged several of the claims as suspicious. She admitted to the fraud to the company investigators, according to the state prosecutors. 

"Palin told investigators she committed fraud to assist with her sister's medical bills, and later her own gambling debts," the state AG's office wrote in a press release.

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

Tuesday, Brassfield was sentenced to eight years of probation and 80 hours of community service. He was also ordered by the Arapahoe County District Court judge presiding over the case to repay the $23,344 in full.

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

Palin, meanwhile, pleaded guilty last month and is scheduled to be sentenced August 19.

"We all end up footing the bill when people engage in insurance fraud," stated Attorney General Phil Weiser. "Our department is committed to holding accountable those who engage in fraud. This case sends a clear message to fraudsters—if you think you can get away with fraud, think again."   

Coloradans 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.