A self-described entertainment promoter was arrested Tuesday in a rented Cadillac Escalade, the third suspect in a $5 million tax-refund scam to be taken into custody.
Hysear Don Randell, 40, was arrested after his two alleged accomplices – state Department of Revenue official Michelle Cawthra, 30, and clothier Andre Holliday, 41 – appeared in court, where bail for each was set at $10 million.
Randell was taken into custody when police stopped the Cadillac Escalade he was riding in near Interstate 25 and West Colfax Avenue, said Lynn Kimbrough of the Denver district attorney’s office.
Randell, Cawthra and Holliday are accused of funneling more than $5.3 million in bogus tax refunds into various bank accounts.
Cawthra worked as a supervisor at the Department of Revenue, and court documents describe Randell as her boyfriend. Holliday, who operates a high-end clothing business in Cherry Creek North, is described in an arrest affidavit as a friend of the couple.
During Tuesday’s court hearing, Cawthra held her hands to her face and wept. Several of her supporters in the gallery rushed from the courtroom after the brief appearance. They declined to comment.
Randell could appear in court this morning. The trio is being held on suspicion of theft and computer crimes. They have not been charged.
Investigators are pursuing leads and following the trail of cash involved in the crime, said Joe Morales of the district attorney’s office.
“We have seized some money,” Morales said, “but we can’t say how much.”
Roxy Huber, executive director of the Department of Revenue, said Cawthra “exploited the trust” of the department. She said her agency was cooperating fully with authorities and was examining its internal controls.
“This woman didn’t just steal money, she stole our image, and we’re not real happy about that,” Huber said.
Randell formed TRU Dat Entertainment in June, according to Colorado secretary of state’s records. In articles of organization, Randell lists an Aurora office but also a suite in Beverly Hills, Calif.
On the TRU Dat website, Randell claims to have been a sponsor of professional boxing matches, including high-profile fights in Las Vegas.
Staff writer Kieran Nicholson can be reached at 303-954-1822 or knicholson@denverpost.com.
