SANTA FE (KRQE) - The criminal case against the former business manager of theJemez Mountain School District may be closed since her apparentsuicide, but the civil lawsuit against her and others willcontinue, according to the executive director of the New MexicoPublic School Insurance Authority.
On Saturday New Mexico State Police investigators said relativesfound Kathy Borrego's body at her Rio Arriba County home.
Investigators said she'd committed suicide two days before beingsentenced for embezzling more than $3.4 million from the JemezMountain district. She faced 41 years behind bars.
"The case ends with the death of Ms. Borrego," District AttorneyAngela Pacheco said of the criminal case prosecuted by heroffice. "She would've been out in 20 years. That's whenshe would've been eligible for parole."
The civil lawsuit filed against Borrego in January by theinsurance authority and the Jemez Mountain district will continue,however, authority director Sammy Quintana said.
The NMPSIA insures all public schools in the state except forthe Albuquerque Public Schools.
"Very tragic what happened, but we'll continue with thelawsuit," Quintana said. "The embezzlement alleges $3.4 million,and we're going to see how much of that we can help the schooldistrict recover."
He said unlike the criminal case the civil lawsuit doesn't justname Borrego, but her partner, daughter and dozens of others theybelieve were involved in the embezzlement scheme or benefited fromit.
Many people, Quintana said, they're still trying toidentify.
Investigators believe Borrego spent some of the money gambling.Quintana said they plan to go name Borrego's estate as a defendantso they can go after her assets and try to trace where the moneywent that she had embezzled.
Pacheco said the community that once scorned Borrego for hercrimes didn't expect this ending.
"What she did is she impacted an entire community, and manychildren were harmed," Pacheco said. "As a result of that sheneeded to be behind bars.
"Her death is definitely something that has been very sad andvery tragic and, you know, I think at this point we just need togive the family time to grieve."
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