Denver law firm will conduct investigation of Velasquez's allegations
Read Terri Velasquez's statement here.
A Denver-based law firm will conduct an independent investigation into allegations of financial misconduct at the city, Colorado Springs Mayor Steve Bach announced Wednesday.
The law firm of Kelly, Stacy & Rita LLC, which specializes in employment law and commercial litigation, will begin the investigation immediately.
“The firm I have hired has never had any involvement with, for or against the City of Colorado Springs,” Bach said in a statement.
“They have represented a number of the largest companies in Colorado and nationally and have vast experience in employment law cases as well as internal investigations and matters involving financial misconduct,” Bach said.
The allegations of financial wrongdoing were lodged by fired city employee Terri Velasquez, who claims the city mishandled funds that El Pomar Foundation gave to keep the U.S. Olympic Committee in Colorado Springs.
Velasquez, the city’s former director of finance and administrative services, also alleged that Bach’s chief of staff, Steve Cox, received a payroll overpayment of nearly $5,000 and didn’t repay it until the mistake was caught by her staff. Velasquez is also claiming the city tried to circumvent legal requirements under the Taxpayer’s Bill of Rights, or TABOR.
The press release didn’t specify how much the investigation will cost or how long it will take.
Bach, who searched for a “qualified law firm” to conduct the investigation for the past week, said he believes the inquiry “will determine the facts in this matter.” He also said he hopes it will restore trust in city government.
Dave Stacy, a trial lawyer and senior partner at the firm, has more than 30 years experience in employment law and is past chair of the Labor and Employment Law section of the Colorado Bar Association, the city said in a news release.
“We will immediately commence a thorough investigation of Ms. Velasquez’ allegations,” Stacy said in the statement.
Stacy did not return a call for comment late Friday.
Neither Velasquez nor her attorney could be reached for comment. In a statement, Velasquez said last week that she was ready to cooperate in an “unbiased investigation.”
