New Castle County Council will vote Tuesday on whether the government will pay $3.7 million to former Chief Administrative Officer Sherry Freebery for legal bills she incurred during a five-year battle against federal corruption and fraud charges.
On Monday, the council heard arguments from Freebery’s attorneys as to why she should be reimbursed, and a counterpoint response from an attorney hired by council to review the matter last month.
In a federal indictment, 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 candidates the administration favored. It further charged that Freebery had them do personal favors for her – all on county time. Additional 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 forced to pay a $350 fine and was placed on probation.
Joel Rosen, the attorney advising Council, said the County’s indemnification law does not require reimbursement because the crimes Freebery was accused of are not things that would stem from the everyday responsibilities of the office she held.
He said the county’s statute is unlike any he’s seen, and said there was no case law he could find to set precedent for the decision.
“I think it’s a harsh result, but that’s my interpretation of the code” Rosen said of his recommendation.
Freebery’s attorneys took issue with Rosen’s advice, and seemed to indicate to the Council that a court appeal could come if their client was not repaid.
William Taylor, a Washington-based attorney specializing in white collar crime, said Rosen’s focus on the charges Freebery faced ignores the fact that they 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.”
Rosen also advised council that it was not required pay $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, a move Rosen said was in violation of the public trust – one of the code provisions that exempts the county from being responsible for reimbursement.
