Nevada Attorney General Adam Paul Laxalt has announced that Karen Rae Chapon of South Lake Tahoe, was sentenced for the crimes of insurance fraud, a category “D” felony, mortgage fraud, a category “C” felony and theft, a category “B” felony.
Chapon is the owner of the business, Tahoe Weddings and Events at Zephyr Cove, Nevada.
On August 15, 2016, authorities say Chapon pleaded guilty to defrauding an insurance company by submitting travel insurance claims using two separate forged death certificates and fraudulent invoices. They say Chapon also swindled a local mortgage broker and out of state title insurance company by providing forged and fraudulent bankruptcy documentation to secure a loan of $180,000. As a result of these fraudulent activities, authorities say Chapon received nearly $200,000 from insurance companies and loan institutions.
“Those considering making false claims and committing other acts of fraud should be aware that their actions will have serious consequences,” said Laxalt. “Insurance and mortgage fraud schemes not only hurt provider companies but the public at large by needlessly driving up insurance costs, and my office will continue to investigate and prosecute complex fraud schemes like this one.”
Ninth Judicial District Court Judge Thomas Gregory sentenced the 47-year-old to a term of incarceration of 72 months with parole eligibility in 24 months. $185,000 of the funds obtained through Chapon’s mortgage fraud scheme were reimbursed during bankruptcy proceedings. At the time of sentencing, Chapon was ordered to pay the remaining $13,000 to her insurance fraud victims.
(The Office of the Nevada Attorney General contributed to this report.)