ap

Skip to content
Denver Post business reporter Greg Griffin on Monday, August 1, 2011.  Cyrus McCrimmon, The Denver Post
PUBLISHED:
Getting your player ready...

A former employee of Aspen businessman George Gradow, who is scheduled to be sentenced today for obstructing a tax audit, claims she was fired for refusing to lie to a grand jury investigating the case.

Colleen Kline sued Gradow in state court last week in Garfield County, claiming wrongful termination and emotional distress. She also filed a motion in federal court in Denver on Wednesday detailing the allegations.

Gradow, 65, pleaded guilty in federal court in August to obstructing an Internal Revenue Service audit of his mobile- home development company, the Churchill Group, by destroying and altering tax documents.

The husband of former Playboy bunny Barbi Benton faces up to 18 months in prison under his plea agreement, although he could be sentenced to as much as three years.

He also may have to pay the IRS $128,185 in taxes he failed to pay in fiscal 1999, prosecutors have said, as well as interest and other penalties.

Kline says she managed personal and family affairs for Gradow but was paid by Churchill.

In her filings, she claims that Gradow “recharacterized” personal expenses as company expenses and revised documents to reflect the change. He then insisted that Kline agree with the changes and support his position in her interviews with auditors, she said.

Gradow also pressed her to testify before the grand jury about events she did not recall, she said. Kline said she was truthful in her interviews and testimony.

In June, after Gradow was charged but while he was still negotiating a plea deal with prosecutors, Kline said, her boss pressured her to reveal to him her grand-jury testimony. He fired her June 30, she said.

Gradow’s attorney, Joseph Thibodeau, did not return a call Wednesday.

Prosecutors have said Kline was a key witness in their case.

Staff writer Greg Griffin can be reached at 303-820-1241 or ggriffin@denverpost.com.

RevContent Feed

More in News