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Treasurer of police charity stole $400K meant for families of fallen NYPD officers: prosecutors

Posted: 1:15 PM, Mar 21, 2019
Updated: 2019-03-21 17:41:19-04

NEW YORK — The former treasurer of a non-profit police charity was arrested for stealing over $400,000 meant for families of NYPD officers killed in the line of duty and using the funds for concert tickets and her son’s legal expenses, federal prosecutors  announced Thursday.

Lorraine Shanley, 68, of Staten Island, who worked for the charity for seven years, faces charges of bank fraud and aggravated identity theft after allegedly stealing more than 20 percent of its donations. She surrendered Thursday morning and is expected to appear in Manhattan federal court.

The charity received about $1.9 million in donations during Shanley’s time as treasurer, with 99 percent of the funds coming from NYPD employees, prosecutors said.

According to the federal complaint, Shanley wrote at least $45,000 in checks that were either payable to family members, or that were made out to other people but which she double endorsed and deposited into her own accounts.

Prosecutors say Shanley also paid approximately $29,000 for her grandchild’s private school tuition, $63,000 for legal services and expenses related to criminal charges against her son, $32,000 for personal dental expenses and approximately $25,000 for landscaping on her home.

Shanley purchased over $8,000 in event tickets, including over $1,400 for Barbara Streisand concert tickets, according to the federal complaint.

“Lorraine Shanley allegedly capitalized on tragedy and monetized people’s generosity,” U.S. Attorney Geoffrey S. Berman said. “As alleged, Shanley stole over 20 percent of the donations to a charity whose sole mission is to help the families of NYPD officers killed in the line of duty. Thanks to the investigative work of the IRS and special agents from our Office, Shanley will be prosecuted for her actions.”

Shanley is charged with one count of bank fraud, which carries a maximum penalty of 30 years in prison, and one count of aggravated identity theft.