DENVER-
One former suspect was released and a new suspect was arrested in an investigation into an alleged scheme to collect millions of dollars in phony state tax refunds and other tax payments, authorities said Wednesday.
Kevin Toohig, 38, was arrested late Tuesday for investigation of theft and criminal conspiracy, the Denver district attorney’s office said.
He was free on $10,000 bond.
Andre Holliday, 41, who had been arrested Saturday on suspicion of theft, was released Wednesday. In a written statement, prosecutors said new information in the case “does not contradict” Holliday’s claims that he did not participate in the thefts.
The statement did not elaborate and a prosecutor’s spokeswoman did not immediately return a call.
Department of Revenue employee Michelle Cawthra, 30, and Hysear Don Randell, 40, remained jailed on $10 million bail.
Court documents gave varying descriptions of Cawthra and Randell’s relationship. One quoted Cawthra’s co-workers as saying Randell was her boyfriend. Another said Randell is married to someone else and that Cawthra had been introduced to other people as Randell’s employee.
Cawthra was suspected of approving phony tax refunds and transfers of estimated-tax payments from taxpayers’ accounts into other accounts, according to an affidavit.
The transfers totaled at least $5.3 million, authorities said.
Prosecutors Wednesday filed 27 felony counts against Cawthra, including violating the organized crime act, computer crime, theft, forgery, embezzlement and conspiracy.
State officials said she has been placed on administrative leave.
Randell was being held on suspicion of theft. Charges had not been filed against him or Holliday.
