Parents Accuse DPS of Sidestepping TABOR Limits and Violating Colorado Organized Crime Control Act

By Nicole C. Brambila | The Denver Gazette

The parent advocacy group that previously accused Denver Public Schools of financial misconduct in court documents has escalated its claims, alleging the district engaged in racketeering through its bond and lease-financing structures.

Mamás de DPS filed a complaint in Denver District Court on Tuesday, accusing district officials of violating the Colorado Organized Crime Control Act. The lawsuit also names the Denver School Facilities Leasing Corp. and Wells Fargo Bank as defendants.

The lawsuit alleged that district officials violated the statute by creating a “shell corporation” and “unlawfully mortgaging” DPS buildings “for the purpose of permitting a bank trustee (here, Wells Fargo) to use public monies to generate investment revenue for private parties.”

It contended that the leasing corporation was structured to do what the district itself cannot under the Colorado Constitution — assume long-term debt without voter approval.

The complaint alleged that the leasing corporation constitutes an unlawful enterprise.

Under the Colorado Organized Crime Control Act, plaintiffs must show the existence of an enterprise and a pattern of racketeering activity. The complaint alleged both elements are present in the district’s long-running lease-financing structure.

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