Two former administrators at the University of Colorado at Denver were indicted Thursday on charges that they embezzled money and gave it to two former university employees who had taken severance packages that were later rescinded.
Former assistant vice chancellor Mary Lou Fenili, 60, and Margaret “Midge” Cozzens, 64, former vice chancellor for student and academic affairs, were indicted on charges of embezzlement of public property, conspiracy and first-degree official misconduct.
A Denver grand jury alleged that Fenili and Cozzens illegally funneled $25,008 to Donna Lee and $15,000 to Marlene Smith.
Cozzens denied the charges. “I did absolutely nothing wrong, and I think the indictment is absolutely ludicrous,” she said. “I think that will be proven in court. I have had a distinguished career, and it’s disappointing it came to this.”
Cozzens is represented by lawyer Pat Tooley.
“I think she is a distinguished leader in higher education and acted in what she felt was a proper and lawful way,” he said. “…She is just a star. Just look at her background and what she has done.”
Fenili is represented by lawyer Pamela Mackey. Mackey did not return calls asking for comment, and Fenili could not be reached.
Neither Smith, who worked as an assistant to Cozzens, nor Lee, who worked as an assistant to the dean of the School of Architecture, was indicted.
Fenili retired in September after 20 years with the school.
Cozzens had taken an unpaid leave of absence beginning in March 2003 and is the president and chief executive officer of the Colorado Institute of Technology. She had been at the university since 1998.
Rick O’Donnell, chairman of the institute’s board, said Cozzens is being placed on unpaid administrative leave.
“We are saddened and concerned over these allegations and believe it is in the best interests of Dr. Cozzens and CIT that she be immediately relieved from her management activities,” O’Donnell said.
An internal investigation at the university uncovered the alleged improprieties, according to James Shore, chancellor of the University of Colorado at Denver and Health Sciences Center. The results of the internal audit were turned over to the Denver district attorney’s office.
The indictment said that in December 2002, it was announced that the school would offer severance agreements to employees in an effort to cut costs. In January 2003, Cozzens signed a severance agreement for Lee that authorized a $25,000 payment. Four days later, Cozzens signed a severance agreement for Smith that authorized a payment of $14,335.
However, shortly afterward, the university rescinded the severance agreements based on a Colorado law that prohibits post-employment compensation to at-will or exempt professional employees, which applied to Smith and Lee.
Despite that, and knowing the severance agreements had been rescinded, Cozzens told Lee and Smith that “she would fix the problem,” the grand jury alleged. The indictment said that Cozzens, Lee, Smith, Fenili and assistant to the vice chancellor Christina Smith worked together to pay Lee and Marlene Smith. Christina Smith, who was not indicted, was directed by Cozzens to prepare documents for the payments, according to the grand jury.
Neither Lee nor Marlene Smith was offered back her job, according to university spokeswoman Danielle Zieg.
Staff writer Howard Pankratz can be reached at 303-820-1939 or hpankratz@denverpost.com.
