On Friday, February 28, 2025, the Canon City Daily Record reported that disbarred District Attorney Linda Stanley failed to respond to a lawsuit filed by the Boards of County Commissioners for Fremont, Chaffee, and Custer counties. The lawsuit, initiated in December, claims that Stanley engaged in fraud and civil theft by improperly using public funds for her legal defense.
The counties jointly filed an entry of default against Stanley after she did not respond to the allegations. Park County, which is part of the 11th Judicial District alongside the other three counties, has not joined the civil action. The lawsuit centers around claims that Stanley improperly expended $99,516.60 from the District Attorney’s operating account to cover legal fees related to allegations of ethical violations under the Colorado Rules of Professional Conduct.
Initially, the alleged amount was reported to be $111,971, but it has since been reduced. The counties are seeking treble damages, meaning they could potentially be awarded up to three times the actual damages claimed. If the court rules in favor of the counties, they could be entitled to $298,549.80, along with additional costs and service fees, post-judgment interest, and future costs related to enforcing the judgment.
An affidavit from the District Administrator of the 11th Judicial District Attorney’s Office asserts that the payments made to Stanley’s legal team were executed at her direction. The affidavit details several transactions, including payments to various attorneys and firms associated with Stanley’s defense. Among these transactions are checks totaling $67,848.95 to attorney Steven Jensen and other payments for services related to legal transcripts and forensic analysis.
Court documents indicate that Stanley was personally served with the summons and complaint at her home in Park County on December 14, 2024. Despite being positively identified by the process server, she reportedly denied her identity. An affidavit confirming the service was filed with the Fremont County District Court on December 17.
The lawsuit notes that Stanley has not pleaded, defended, or otherwise responded to the legal action, which has allowed the counties to seek a default judgment. More than 21 days have elapsed since the personal service, leading the counties to pursue this legal avenue.
Stanley served as District Attorney from January 2020 until her disbarment on November 1, 2024. During her tenure, she faced multiple allegations of ethical violations, which led to her disbarment following a two-week disciplinary hearing in June 2024. The decision to disbar was made by the Office of the Presiding Disciplinary Judge based on findings from complaints filed by the Office of Attorney Regulation Counsel, which detailed several breaches of the Colorado Rules of Professional Conduct.
Following her disbarment, Stanley appealed to the Colorado Supreme Court. The complaints included issues related to diligence, pretrial publicity, extrajudicial comments by prosecutors, and responsibilities of supervisory lawyers. The allegations also highlighted a pattern of discovery violations, resulting in serious cases being downgraded or dismissed.
The lawsuit asserts that Stanley’s use of public funds for legal expenses that were not necessary for her official duties constitutes fraudulent conversion of county funds. In June 2024, Fremont County Attorney Eric Bellas notified Stanley of the allegations regarding her alleged misappropriation of public funds, yet the lawsuit claims she continued such practices despite the warnings.
According to the lawsuit, Stanley did not disclose her intent to use public funds for personal legal expenses during budget meetings with the county commissioners. It further alleges that she concealed these expenditures, creating a misleading impression that they were legitimate operating expenses for her office. This concealment allegedly led the counties to continue funding her office without knowledge of the misuse of public funds.
Source: Canon City Daily Record
