Two former administrators at the University of Colorado at Denver, indicted for funneling money to two former employees who had their severance packages rescinded, were advised of the indictment today by Denver District Judge Morris Hoffman.
Former assistant vice chancellor Mary Lou Fenili, 60, and Margaret “Midge” Cozzens, 64, stood quietly with their lawyers. Pat Tooley represents Cozzens and Pamela Mackey represents Fenili. Cozzens was the assistant vice chancellor for student and academic affairs.
A Denver grand jury alleged that Fenili and Cozzens illegally gave $25,008 to Donna Lee and $15,000 to Marlene Smith.
Neither Smith, who worked as an an assistant to Cozzens, nor Lee, who worked as an assistant to the dean of the School of Architecture, was indicted.
“You are here because the Denver grand jury has indicted you,” Hoffman told the women. “I will tell you of your rights and what your charges are. You are charged with one court of embezzlement, a class 5 felony; conspiracy to commit embezzlement of public property, a class 6 felony, and first-degree official misconduct, a misdemeanor.”
The judge told the women that they had a right to remain silent and warned that anything they might say about the case could be used against them at trial.
The women are not in custody and are free on $5,000 bond.
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However, shortly afterward, the university rescinded the severance agreements based on a Colorado law that prohibits post-employment compensation to at-will or exempt professional employees, which applied to Lee and Smith.
Despite that, and knowing the severance agreements had been rescinded, Cozzens told Lee and Smith that “she would fix the problem,” the grand jury said.
However, Cozzens has denied any wrongdoing.
The women and their lawyers declined comment today.
Staff writer Howard Pankratz can be reached at 303-820-1939 or hpankratz@denverpost.com.
