Krebs embezzlement trial now up to jurors
Prosecutors John Duran, left, and Andrew Coffing, and defense attorneys Paul Kennedy and Jessica Hernandez speak with Judge Cindy Leos during Paul Krebs鈥 embezzlement trial at the 2nd Judicial District Court in sa国际传媒官网网页入口 on Thursday.
Paul Krebs told jurors Thursday that the University of New Mexico lost no money as a result of the ill-fated 2015 Scotland golfing trip and that he acted 鈥渋n good faith鈥 to benefit the athletic program.
鈥淚 don鈥檛 believe I did anything wrong,鈥 Krebs, UNM鈥檚 former athletics director, testified in his own defense. 鈥淚 did not convert any UNM funds to my own purpose. Everything I did was done in good faith.鈥
Jurors began deliberations Thursday on the fourth day of Krebs鈥 trial on two counts of felony embezzlement before 2nd Judicial District Judge Cindy Leos.
Prosecutors allege that on two occasions Krebs used public funds to pay expenses for the Scotland trip. Participants included himself, family members, former men鈥檚 basketball coach Craig Neal and three donors with no university affiliation.
Much of the prosecution鈥檚 argument centered on Krebs鈥 alleged violations of university policies by transferring money from UNM Foundation and athletics department funds.
鈥淗ow many times have you heard the word policy come out of these prosecutors鈥 mouths,鈥 Krebs鈥 attorney, Paul Kennedy, told jurors Thursday. 鈥淧olicies are not law.鈥
Kennedy argued that the Scotland trip was a 鈥渓egitimate athletic department purpose鈥 and that Krebs had discretion to use the funds to pay for trip expenses.
Krebs did not commit embezzlement because he did not benefit financially from the transactions, Kennedy said in closing arguments.
鈥淯NM is not out one cent,鈥 he said. 鈥淭hat鈥檚 not embezzlement.鈥
Prosecutors with the New Mexico Attorney General鈥檚 Office responded that Krebs committed embezzlement by using UNM funds for purposes not intended by the university.
鈥淢r. Krebs used UNM property, the property of another, for his own purpose rather than the purpose authorized by the owner,鈥 Assistant Attorney General John Duran told jurors.
UNM policies define the allowed uses of university funds, Duran said in his closing arguments.
鈥淭he purpose authorized by the owner is policy,鈥 he said.
Krebs said repeatedly during his testimony that he had not read UNM鈥檚 policy manual and relied on staff to keep him abreast of policy issues.
Prosecutors also said in closing arguments that Krebs made no effort to compensate the university until after reporters began publishing news reports about the trip in 2017.
Krebs made an anonymous donation of $25,000 to the UNM Foundation to cover costs associated with the Scotland trip. He later acknowledged making the donation himself.
Krebs was the only witness for the defense and spent more than three hours on the stand Thursday. Krebs said he made the donation after UNM leaders became upset by media reports about the trip.
鈥淚n my experience, universities don鈥檛 react particularly well鈥 to adverse publicity, Krebs told jurors. UNM leaders 鈥渨ere very concerned about the stories in the media鈥 and were anxious to 鈥渕ake the story go away,鈥 he said.
Prosecutors allege that Krebs directed staff to waive the $8,100 cost of the 鈥済round package鈥 for each of three large donors who agreed to pay their own airfare to Scotland.
He also allegedly directed a payment of $13,625 from an athletic department 鈥渃ontingency fund鈥 to reimburse the Lobo Club, the nonprofit fundraising arm of the athletic department.