Tahoe woman sentenced for mortgage fraud
April 4, 2017
Karen Rae Chapon, 47, of South Lake Tahoe was sentenced this week for insurance and mortgage fraud.
She pleaded guilty to submitting travel insurance claims using two forged death certificates and phony invoices. She also admitted to cheating a local mortgage broker and title insurance company using forged bankruptcy documentation.
According to the Nevada Attorney General's Office, she received nearly $200,000 from insurance companies and loan institutions.
Douglas County District Judge Thomas Gregory sentenced Chapon to 72 months in prison with parole eligibility after 24 months. She was ordered to pay $13,000 to her victims. The remaining $185,000 was reimbursed during bankruptcy proceedings.
Chapon is the owner of Tahoe Weddings and Events of Zephyr Cove.
The conviction was the result of a joint investigation by the AG's Insurance Fraud Unit in cooperation with the U.S. Bankruptcy Court.
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