New Castle County will not reimburse former Chief Administrative Officer Sherry Freebery $3.7 million in legal fees she incurred during a five-year battle against federal corruption and fraud charges.
The Council voted 11-1 to reject paying Freebery, with many members citing the legal advice that suggested the county’s indemnification law did not apply to her because the crimes she was accused of are not things that would stem from the everyday responsibilities of the office she held.
Freebery had been accused manipulating county employees into doing work outside the purview of their normal responsibilities, such as running phone banks during the 2000 election and handing out campaign literature for Council candidates the administration favored. It further charged that Freebery had them do personal favors for her – all on County time. Charges of mortgage fraud were also included.
Freebery pleaded guilty to a single felony charge of mortgage fraud in June and in exchange, prosecutors dismissed all other charges. She was ordered to pay a $350 fine and was placed on probation.
Councilman Joseph Reda (D-Elsmere) said he voted against repayment because the code gives Council the discretion.
“It says we may, and I may not,” he quipped.
But Councilman Jea Street (D-Wilmington South), who voted with Reda, was less confident.
“I’m concerned this may be a feel-good vote because the presentation from the attorneys yesterday made it crystal clear that it’s not going to stop here,” he said. “We’re going to end up paying some lawyers some substantial amount of money one way or another.”
On Monday, the day prior to Council’s vote, Freebery’s counsel William Taylor did seem to suggest a court challenge was possible. He said the advice of Joel Rosen, the County’s consultant on the matter, ignores the fact that charges were ultimately dropped when she pleaded guilty to the mortgage fraud charge, which he said did not pertain to her role as a county employee.
“[Rosen’s] interpretation is bound to fail,” he told the Council. “It will not stand up and will only prolong the day that the fairness due her is met.”
Councilman William Tansey (D-Hockessin) was the lone Council member to vote for reimbursement. He said he could not in good conscience consider the origin of charges that were ultimately dropped.
“By denying these reimbursements, council is establishing a harmful precedent,” Tansey said. “Police officers and code enforcement officers will no longer have the assurance they will be protected.”
In a separate vote, the Council voted unanimously to deny reimbursement of $25,051 in fees to Janet Smith, a top aide to Freebery who pleaded guilty to a misdemeanor for intimidating a subordinate to conceal evidence from law enforcement officers. Council members said they believed her crime was in violation of the public trust, a code provision that allows for the denial of reimbursement.
Resident Pam Rush said not repaying the former officials sends a strong message to others.
“It says that New Castle County officials who try to use their office for political or financial gain will have to face the consequences,” she said.
