Cherry Creek North clothier Andre Holliday was released from jail Wednesday as authorities backed off accusations that he was involved in a massive theft from taxpayers that could reach $10 million.
Holliday said he had not ruled out suing the city for the arrest.
“I don’t think getting back to normal will be happening anytime soon,” Holliday, 41, said at his home after being released from jail. “I know they (authorities) were just doing their jobs, but I think they should have had something more concrete before slamming me the way they did.”
Meanwhile, charges were filed Wednesday against the key suspect in the alleged tax-refund scam. Colorado Department of Revenue employee Michelle Cawthra is suspected of funneling millions of dollars in bogus tax refunds to fraudulent accounts, authorities said. Prosecutors initially said the scheme involved $5 million, but Wednesday, Joe Morales of the Denver district attorney’s office said authorities now believe it could be up to $10 million.
Holliday had been held with Cawthra and her boyfriend, Hysear Don Randell, in lieu of $10 million bail for investigation of theft and computer crimes. But Holliday was released as prosecutors faced a deadline to file formal charges.
“At this point in time we cannot charge Mr. Holliday,” Morales said. “We can’t meet the deadline.”
After his arrest, Holliday gave a statement to investigators proclaiming his innocence, and so far it’s holding up, Morales said.
“What we initially saw, he was deeply involved,” Morales said. “But what he’s been telling us cannot be contradicted.”
Holliday told The Denver Post that it was difficult to be in jail when he was innocent. He was thankful that his friends, family and clients continued to believe in his innocence.
“That store is my life”
“I’m happy being out of jail for my kids. … I knew it would be just a matter of time before the truth would surface and I’d be getting out,” he said. “I’m looking forward to getting back to work, restoring the name for my store, because that store is my life.”
According to Cawthra’s arrest affidavit released Wednesday, Holliday said Randell recommended Cawthra to do Holliday’s taxes. On or about March 7, Holliday and his wife signed their tax return and “Cawthra offered to handle the mailing of the taxes and that was the last time Holliday saw his (Colorado) returns,” the affidavit said.
Attorney M. Colin Bresee, speaking Wednesday afternoon as Holliday’s lawyer, said his client was unaware of the alleged tax-refund scam.
“There’s a lot of evidence that his business accounts were used,” Bresee said. “But at no point did he ever have any knowledge his accounts were being used. He never had any access to the money and never had any control of this money.”
Cawthra, 30, faces 27 felony counts, prosectors said Wednesday. She is accused of violating the Colorado Organized Crime Control Act, theft, conspiracy to commit theft, 18 counts of forgery, embezzlement of public property, conspiracy to commit embezzlement of public property, and two counts each of computer crime and conspiracy to commit computer crime.
Cawthra used the names of former department employees to generate bogus tax-refund claims and then signed off on the refunds, according to an arrest affidavit. A colleague of Cawthra’s recognized Holliday’s name on a string of back-tax refunds totaling more than $80,000 and became suspicious because Cawthra bought clothing from Holliday, the affidavit said.
Randell, 40, was arrested Tuesday but prosecutors have not filed formal charges against him.
An attorney from Ohio, Kevin Toohig, was arrested along with Randell. According to the affidavit, Toohig is suspected of helping Randell make a wire transfer of $710,098 to a bank in Cleveland.
Holliday said he felt “more than taken advantage of” by Randell and Cawthra.
Cawthra “did a little bit of accounting for me, and I trusted her,” he said.
