An Albany County, N.Y. woman who reported her fur coat stolen and filed a $3,500 insurance claim was arrested for insurance fraud on March 25 by authorities.

Lorraine D. Gay, 51, was arrested after a three-month investigation was conducted by Investigator Thomas McNaughton of the New York State Insurance Department's Fraud Bureau and the Albany Police Department.

McNaughton said that his department launched an investigation into Gay's claim after her insurance company, New York Central Mutual, flagged Gay's claim. The insurer became suspicious of Gay's claim because it was the latest in a series of insurance claims she had filed with the company over the course of the year.

New York Central Mutual never paid out Gay's fur coat claim and investigators eventually found the fur coat -- which Gay had claimed was stolen from her car -- in her home. After this discovery, McNaughton said that Gay gave investigators a written statement confessing to fabricating the insurance claim.

Gay worked as a project manager by the New York State Office of the Comptroller when she reported the coat stolen. She was formally charged with insurance fraud and falsely reporting an incident. If convicted, she could face up to seven years in prison.

Interested in more fraud news and in-depth articles? Head over to Claims' fraud channel for more information.

Special Reports /

Fraud of the Week: Fur Coat Farce Foiled

Related Stories

Recommended For You