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Treasurer of Charity for Dead NYPD Officers Arrested for Stealing Hundreds of Thousands of Dollars, Prosecutors Say

Federal prosecutors allege that she stole from the charity for school tuition, legal fees, dental work and Barbra Streisand tickets; 99% of the charity's donations came from NYPD officers

What to Know

  • The former treasurer of a charity for fallen NYPD officers faces charges that she stole more than $400,000 from the organization
  • Lorraine Shanley surrendered Thursday morning; she's expected in Manhattan court later in the day
  • Federal prosecutors allege that she stole from the charity for school tuition, legal fees, dental work and Barbra Streisand tickets

The former treasurer of a charity for NYPD officers killed in the line of duty allegedly stole more than $400,000 from the nonprofit for her son's legal expenses and her own dental work, federal prosecutors said.

Lorraine Shanley, 68, surrendered Thursday morning. She worked for the charity for seven years, and allegedly stole more than 20 percent of its donations, according to a federal complaint.

The U.S. Attorney's Office in Manhattan did not identify the charity, but a website for Survivors of the Shield, which is dedicated to aiding the families of officers killed in the line of duty, identified Shanley as its treasurer. 

The group received about $1.9 million in donations during Shanley's time on the board, prosecutors said, with 99 percent of the funds coming from NYPD employees. 

With control of the charity's bank account and credit card, the complaint alleges, Shanley paid $29,000 for a grandchild's private school; $63,000 for legal services for a son facing criminal charges; $32,000 for dental work and $25,000 for landscaping; and $1,400 for Barbra Streisand tickets.

In addition to her affiliation with the charity, Lorraine Shanley also sits on the board of the trustees of the New York City Police Museum. 

"If true, these allegations constitute deep violation of the trust of those who generously donate to help police families going through heartbreaking tragedy," the NYPD's Deputy Commissioner of Public Information Phillip Walzak said in a statement Thursday.

Shanley has been charged with one count of aggravated bank fraud and one count of aggravated identity theft, prosecutors say. 

Attorney information was not immediately available. The president of Survivors of the Shield did not return emails for comment. 

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