Former Travelers Insurance Employee Sentenced in $268K Fraud Scheme

A former insurance claims adjuster has been sentenced for her role in a fraudulent auto insurance scheme that funneled hundreds of thousands of dollars into her own pocket and those of her associates.

Colette Palin, 63, of Aurora, CO, was sentenced to 20 years of probation and ordered to pay $268,530 in restitution by an Arapahoe County District Court judge. The sentencing follows her guilty plea to charges of theft and insurance fraud, both felonies. The charges stem from her time at Travelers Insurance, where she exploited her position to issue 64 fraudulent payments between 2018 and 2020.

According to the Colorado Department of Law, the fraud was uncovered during an internal investigation by Travelers, which identified suspicious claims linked to Palin. The investigation revealed Palin had funneled payments to herself and two associates, including Shawn Brassfield, 55, also of Aurora, who received $23,344, and Malee Lor, 47, a former Thornton police officer, who received $31,495.

Brassfield and Lor were also prosecuted in connection with the scheme. Both pleaded guilty to felony charges and were sentenced earlier this year. Brassfield received eight years of probation, 80 hours of community service, and was ordered to pay restitution, while Lor was sentenced to 10 years of probation, 120 hours of community service, and ordered to pay similar restitution.

“We all end up footing the bill when people engage in insurance fraud,” said Colorado Attorney General Phil Weiser, whose office led the prosecution. “This case sends a clear message to fraudsters if you think you can get away with fraud, think again.”

Palin admitted to investigators she initially committed fraud to help cover her sister’s medical bills but later continued the scheme to address her own gambling debts. As part of her probation, Palin is required to undergo treatment for gambling addiction, is prohibited from gambling, and must serve 48 hours of community service.