FILED IN MY OFFICE ‘SECOND JUDICIAL DISTRICT COURT BERNALILLO COUNTY, NM. cama tt 2/6/2019 9:50 AM STATE OF NEW MEXICO to COUNTY OF BERNALILLO SECOND JUDICIAL DISTRICT COURT STATE OF NEW MEXICO, Plaintiff, : No, Dove? cr 9019 "0369 PAUL ROBERT KREBS, CINDY LEOS Defendant. CRIMINAL COMPLAINT AND REQUEST FOR SUMMONS CHARGES: 1. Fraud (over $20,000.00) (2nd degree felony) (NMSA 1978, § 30-16-6) (0556); 2, Making or Permitting False Public Voucher (4th degree felony) (NMSA 1978, § 30-23-3) (0778); . 3. Tampering with Evidence (4th-degree felony) (NMSA 1978, § 30-22-5) (1557); 4, Money Laundering (4th-degree felony) (NMSA 1978, § 30-51-4) (2585); and 5. Criminal Solicitation: Tampering with Evidence (4th-degree felony) (NMSA 1978, §§ 30- 28-3 and 30-22-5) (1560) Complainant or Officer: A. Vargas Man #: 802 CRIMINAL COMPLAINT The undersigned, under penalty of perjury, complains and says that on or about the Ist of, September, 2014 through July 2017 in the County of Bernalillo, State of New Mexico, the above- mentioned defendant did: BACKGROUND + Paul Krebs is currently the owner of P&M Educational Consultants which offers consulting services offered as an experienced owner with a demonstrated history of ‘working in the higher education industry. Strong business development professional skilled in nonprofit orgenizations, coaching, event management, team building, and media relations. + Krebs was named the Vice President for Athletics for The University of New Mexico on ‘March 13, 2006 and began serving in that position on June 1, 2006, 1‘+ Krebs eamed a bachelor’s degree in Business from Bowling Green State University in 1978 and a master’s degree in Athletic Administration from Ohio State University in 1981. + Krebs began his professional career in collegiate athletics as the Assistant Ticket Director at the University of Oklahoma in 1981. He was promoted to Ticket Director in 1983, He worked for the Ohio State University in 1985 as ticket director and was named assistant athletic director in 1987. In 1991 he was promoted to assistant athletic director for administration, a position he held until 1993 when he was named Senior Associate Athletic Director. As such, Paul Krebs coordinated the department's $58 million budget, directed its long range financial planning and budget oversigh/reporting programs. He left Ohio State in 1999 to become the Athletic Director at Bowling Green State University. + Krebs employment duties as explained by his employment contract stated he was responsible for the leadership and direction of all aspects of the University’s intercollegiate athletics program including ensuring compliance with all policies and regulations of the University, the National Collegiate Athletic Association (NCAA) and the Mountain West Conference (MWC) or other conference in which the University may participate. Paul Krebs served as a member of the NCA Competition Oversight ‘Committee and served as the Mountain West Representative to the NCAA Council. He has served on the NACDA Executive Board and he was the Mountain West representative to the I-A Athletic Directors. He formerly was the liaison to the Mountain West football and basketball coaches. + The Athletics Department is a department within the University of New Mexico responsible for intercollegiate athletic competition. The Lobo Club and the UNM Foundation are separate nonprofit entities that are tasked with supporting fundraising, endowment management, and other services for the University of New Mexico. While ‘The UNM Foundation is responsible for every department within the University, The ‘Lobo Club is solely focused on fundraising efforts for the Athletics Department. Funds received from private donations could be moved between The Lobo Club and the UNM Foundation, and then to the University. The Lobo Club, which has office space located ‘on the University of New Mexico campus, does not employ any staff. It is instead comprised of staff from the UNM Foundation and the University. SCOTLAND GOLF TRIP In September 2014, VP of Athletics for the University of New Mexico, Paul Krebs, began discussion with Anthony Travel, a sports travel management company specializing in university athletics, regarding a “fundraising trip” to Scotland. During his communication via email with Anthony Travel, Inc. Paul Krebs mentions that his father-in-law has always wanted to take a trip to Scotland and play golf. As Vice-President of Athletics, Paul Krebs was only authorized to sign game contracts and contracts for rental of athletic facilities for the University; however, on October 29, 2014, a contract between Anthony Travel and The University of New Mexico was signed by Paul Krebs, acting as a representative of UNM. The signing of the contract appears to be a violation of UNM Contracts Signature Authority and Review Policy 2010. ‘The policy also states that “Each contract must be carefully reviewed by the University employee initiating the contract and aUniversity contract review officer”. The purpose of the contract was to provide golf packages for a “golf tour” in Scotland. The agreement was for twenty-four (24) golf packages; two of which were for two athletics department employees, Paul Krebs and Craig Neal. The signing of the contract placed UNM in debt to Anthony Travel for $247,176 (24 packages at the single occupancy rate of $10,299). The following day, on October 30, 2014, Paul Krebs informs ‘Anthony Travel via email that the trip is “good to go” and that a signed contract as well as a check from the UNM “Lobo Club” totaling $49,500, twenty-five percent (25%) of the estimated total cost, would be sent to Anthony Travel to pay the deposit of the trip. ‘The UNM Athletics department was unable to fill all twenty-four (24) packages, and was responsible for: (1) refunding the Lobo Club $13,625.00 (the UNM Athletics Department was forced to pay for one unreserved “golf tour” package plus fees, which was withheld from the Lobo Club deposit in the amount of $13,625.00); (2) paying Paul Krebs roundtrip airfare of $1,190.00; (3) as well as paying for the remaining six (6) packages at $8,189 each (two UNM employees, one UNM Foundation employee, and 3 donors), for a total cost of $63,949.00. Prior to being made aware that they would be unable to fill all twenty-four (24) packages, the UNM Athletics Department paid Anthony Travel for three participants of the “Golf Tour”, participants included: VP of Athletics Paul Krebs, Head Men’s Basketball Coach Craig Neal and UNM Foundation employee Kole McKamey. The UNM Athletics Department then paid for three local “donors” to participate in the “golf tour”, again at $8,189 each, which totaled $24,567.00. Even after paying for the three additional donor packages, the UNM Athletics Department still had not fulfilled the twenty-four (24) tour package commitment. Multiple interviews were conducted with former employees of Lobo Club. Subjects interviewed disclosed that UNM Lobo Club had no involvement with the Scotland Golf Tour other than paying the deposit to Anthony Travel, Inc. Each subject stated that the funds paid by Lobo Club had to be approved by the Lobo Club Executive Board and Finance Committee during a board meeting. The request was documented and approved by the committee. Another interviewee mentioned that when it was time to close the Lobo Club financial books for the fiscal year, the Lobo Club Executive Board had a discussion with Krebs about the reimbursement for the deposit and was told that Anthony Travel, Inc. would handle it. When the deposit came back to the Lobo Club it was $13,625 short of the original deposit of $49,500. The $13,625 to complete the reimbursement to Lobo Club was transferred from a University of New Mexico banner system. “index” also called a “sports enhancement fund”. Each of the subjects interviewed stated that Lobo Club had never been asked to help with funds for a trip like this before and had never “fronted” money for any fundraising effort before. All payments made to Anthony Travel, Inc. from the UNM Athletics Department were made using a UNM purchasing card, Per The UNM Athletics Department Business Manual, purchasing cards utilized by UNM have a set spending limit of $10,000. Paul Krebs was aware of the purchasing card restrictions and appears to have structured the payments to Anthony Travel, Inc. in a manner that suggests he was trying to avoid needing the required approval from the University. The University of New Mexico employee contract signed by Paul Krebs on June 12, 2014 states “This appointment is governed by applicable policies as stated in the University Regents Policy Manual and ‘The University business Policies and Procedures Manual, as they are amended from time to time, published and distributed by the University, and by relevant federal and state laws and regulations.” The contract goes on to say “Mr. Krebs is responsible for maintaining complete knowledge of and full compliance with the policies, rules, and regulations 3