The Adams County commissioners today filed a federal lawsuit against seven people and two companies, alleging an elaborate scheme that involved the theft of $8.6 million in a paving scandal that has led to multiple criminal charges.
The lawsuit was filed in the ongoing scandal involving Quality Paving Co. and its sister, Quality Resurfacing Co., in which officials of the firms and county workers have been accused of bilking taxpayers for work that was never done.
Six of the seven people who were sued today have been charged criminally.
The civil lawsuit was filed under the Racketeer Influence and Corrupt Organizations Act — known in legal circles as RICO — and alleges that the defendants worked together to commit a crime.
They are accused of taking part in a scheme in which taxpayers were billed for work that was never done.
Named in the suit were Lee Asay, the county’s former public works director; Sam Gomez, a former construction manager for Adams County; Stacey Parkin, a former road inspector for Adams County; Jerry Rhea, the former owner of Quality Paving and Quality Resurfacing; Dennis Coen, a former vice president at the two companies; Heath Russo, an employee of the companies; and Louie Schimpf; and employee of Quality Paving.
In addition, the suit named Quality Paving and Quality Resurfacing. The company was sold in May 2010, and has since closed.
Asay is the only one of those named in the suit who has not been charged with a crime.
The county commissioners first authorized the lawsuit in May as part of a package of reforms.
“This is part of that reform plan to make a public statement that these commissioners stand for good government,” said Larry Pozner, one of the attorneys hired by the county to file the lawsuit.
At the same time, however, an ongoing criminal investigation is under way looking at Commissioner Alice Nichol’s relationship with Quality Paving Co.
The Denver Post earlier this year reported that Nichol and her husband, Ron Nichol, had work done at their home by Quality Paving, and that Rhea, the company’s former president, was instrumental in landing a high-paying county job for the commissioner’s son-in-law.
Just last week, a lawyer for Coen said that he was prepared to testify that he was present when a $10,000 kickback was given to Alice and Ron Nichol by Rhea in 2008 — charges the commissioner and her husband have denied through their attorney.
Quality Paving and Quality Resurfacing had originally been awarded the contracts after bidding on them in 2004. The next three years, the Adams County commissioners extended those contracts without putting them out to bid after the company agreed to keep the 2004 prices in place.
Prosecutors in the criminal case have alleged that company and county officials conspired to drive up the price by falsifying billing statements. In some cases, work was billed for non-existent roads; in others, according to prosecutors, work was greatly over-priced.
