Stateline woman admits felony fraud charges
A Stateline woman admitted to three felony charges on Monday in connection with frauds perpetrated on an insurance and a mortgage company.
Karen Rae Chapon, 46, agreed to plead guilty to insurance fraud, mortgage lending fraud and theft under charges pursued by the Nevada Attorney General’s Office.
Under the agreement with the state, Chapon will repay $195,000 and avoid federal charges. Her husband won’t be charged in the case as a result of the agreement.
While she could receive probation, the three charges carry a maximum sentence of 29 years if they were run consecutively.
According to court documents, Chapon took out traveler’s insurance twice and then claimed that a family member died to collect, even forging death certificates for her husband’s father and mother to back up the claim.
More serious is a charge that Chapon took out a $180,000 loan on her Zephyr Heights home which was under bankruptcy protection.
On Dec. 21, 2015, she obtained a $180,000 home loan on the property by forging a release of bankruptcy from the court.
She is scheduled to be sentenced Nov. 7.