CHICAGO
08/31/2011 02:33 pm ET Updated Oct 31, 2011

Sex Toy Fraud Case Could Cost Indiana Woman $70,000, Jail Time

An Indiana postal worker faces up to five years in prison for fraud after claiming she had no income while secretly managing an online sex toy shop called Chopper's Playhouse, according to a plea agreement filed in Hammond last month.

Chopper Loughran, 29, of Lake Station, Indiana was working for the U.S. Postal Service as a letter carrier when she filed a claim saying she suffered an on-the-job injury to her foot in 2008, the agreement says.

Following the injury, she filed for reimbursement for treatment-related travel costs, including gas and childcare, for trips that she did not take, and declared that she was not self-employed or involved business enterprise while she received worker’s compensation.

After an investigation called her compensation claims into question, Loughran confessed that she was generating income selling sex toys on eBay, according to the Chicago Sun-Times.

Loughran’s plea agreement says she’ll have to pay between $30,000 and $70,000 in restitution, the Sun-Times reports.