Mastermind of $268k auto insurance fraud scheme sentenced

Aug. 20, 2024 (DENVER) – Attorney General Phil Weiser announced today that a woman who worked as an insurance claims adjuster and masterminded a scheme to steal hundreds of thousands of dollars in fraudulent auto insurance claims was sentenced to 20 years of probation and ordered to pay $268,530 in restitution by an Arapahoe County District Court judge. Colette Palin, 63, of Aurora, previously pleaded guilty to theft, a class four felony, and insurance fraud, a class five felony.

Palin worked for Travelers Insurance in 2020 when the company flagged several of her claims as suspicious because they were associated with the same email address. An internal company investigation revealed the email address belonged to Palin, and that a known associate of Palin, Shawn Brassfield, 55, of Aurora, was the beneficiary of two claim checks she issued. Palin admitted to company investigators that she issued fraudulent payments to herself, Brassfield, and another associate, Malee Lor, 47, a former Thornton police officer.

After Travelers referred the case to the Financial Fraud Unit in the Criminal Justice Section of the Colorado Department of Law, the state’s investigation found Palin issued 64 fraudulent payments totaling $268,530 between 2018 and 2020. Of that total, Lor received $31,495 and Brassfield received $23,344. Palin told investigators she committed fraud to assist with her sister’s medical bills, and later her own gambling debts.

“Consumers are the biggest victims of insurance fraud, because we all pay higher premiums when fraudsters strike,” said Weiser, whose department prosecuted the case. “We will prosecute and hold accountable anyone who tries to take advantage of the system.”

As a condition of her probation, Palin will also be required to seek treatment for gambling addiction, be forbidden to gamble or set foot in a casino, will participate in a victim impact panel, and will serve 48 hours of community service. Previously, Lor was sentenced on May 6 to 10 years of probation and 120 hours of community service, and Brassfield was sentenced July 22 to eight years of probation and 80 hours of community service.

Palin’s case was filed in Arapahoe County District court and the case number is 2023CR2480.

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.

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