The investigation into the $10 million theft at the state Department of Revenue has been turned over to the Denver grand jury, which will look into whether others were involved, prosecutors said Wednesday.
The grand jury also will use its subpoena powers to obtain bank, business and tax records that may show where money stolen in the scheme has gone, officials added.
Earlier this month, prosecutors charged Department of Revenue supervisor Michelle Cawthra and an alleged accomplice, Hysear Don Randell, with counts of theft, embezzlement of public property, conspiracy and violating the Colorado Organized Crime Act.
Cawthra, described as Randell’s girlfriend, is suspected of funneling up to $10 million in tax refunds into fraudulent accounts controlled by Randell.
“This is a very complex case. We want to make sure we get our facts straight,” said Joe Morales of the Denver district attorney’s economic crime unit.
Lynn Kimbrough, spokeswoman for the DA’s office, said the grand jury can compel witnesses to testify.
Investigators want to look for some of the stolen money in the state retirement accounts of Cawthra and Randell, since both at one time were state employees. Public Employees Retirement Association officials object to releasing that confidential information, but Denver County Judge Aleene Ortiz- White said she would review the PERA documents and, if appropriate, release them to investigators.
Among those attending a court hearing in the case Wednesday was Cawthra’s mother, Sheri Kite, who said she was subpoenaed by the grand jury and has testified.
Cindy Quint, Cawthra’s aunt, also attended. She described her niece as “the sweetest person you can come across.
“She’d give you the shirt off her back,” Quint said. “I think the truth will eventually come out. The truth will come out through the court system.”
Staff writer Howard Pankratz can be reached at 303-954-1939 or hpankratz@denverpost.com.
