Former UNM athletic director received 'not one penny' from 2015 golf trip to Scotland, defense says

Former University of New Mexico Athletic Director Paul Krebs committed no crimes because he reaped no financial benefit following an ill-fated golfing trip to Scotland, his attorney told jurors Monday on the first day of Krebs’ criminal trial.

Prosecutors allege that Krebs misused UNM and Lobo Club funds to help pay for the 2015 trip that included himself, family members, former men’s basketball coach Craig Neal and large donors with no affiliation to the university.

Krebs faces two counts of felony embezzlement in a trial scheduled to continue through Friday before 2nd Judicial District Judge Cindy Leos.

Plans for the overseas golfing trip began to go sideways in the months before the event took place in June 2015 when key participants began pulling out, Krebs’ attorney, Paul Kennedy, said in opening statements Monday.

“Part of the elements of embezzlement is that the defendant converted the money to his own use,” Kennedy said. To prove the crime of embezzlement, prosecutors also need to show that Krebs “fraudulently intended to deprive the owner of the money” by deception and cheating, he said.

“You will hear no evidence in this case that Paul Krebs cheated anyone, deceived anyone, intended to deceive or cheat anyone, or took any money,” Kennedy said. “You will see no paper trail of money going to Paul Krebs,” he said. “Not one penny, not one dime went to Mr. Krebs.”

Attorneys for both the defense and the prosecution agreed that problems arose after Krebs began planning the Scotland trip in 2014.

Brian Urlacher, a star football player for both the Chicago Bears and UNM, had originally planned to join the trip but later canceled, Kennedy said. Urlacher’s participation had been intended to boost interest in the trip.

The trip also coincided with Father’s Day, which caused others to drop out, he said.

Assistant Attorney General Andrew Coffing told jurors that, in an effort to fill the vacant spots, Krebs directed his staff to waive the $8,100 cost of the “ground package” if they could pay their own airfare to Scotland.

Staff members found three donors who accepted the discounted trip, causing a $24,500 shortfall that Krebs later covered with UNM funds, Coffing said.

“This is strictly against the rules the university sets out in how their public funds are managed,” Coffing said. “By using the university’s funds in this way, with the intent to deprive the university of this money, he was not only breaking the rules, but he was breaking the law.”

Kole McKamey, a former employee for the Lobo Club, testified Monday that in the weeks before the Scotland trip, he was unable to find people willing to sign up for vacant spots on the trip.

“I had a list that was provided to me,” McKamey said. “I started working down the list. It didn’t work out very well.”

As a result, Krebs directed McKamey to waive the $8,100 cost of the “ground trip,” he said. Subsequently, McKamey was quickly able to find three people willing to join the trip, he said.

The second count of the charges against Krebs alleges that he used $13,625 in funds from a UNM Athletics Department fund to reimburse the Lobo Club, a nonprofit fundraising organization, for its initial down payment to an out-of-state travel agency that arranged the Scotland trip.

Krebs was “essentially using public money to sweep this matter away,” Coffing told jurors.

Who will testify in Paul Krebs embezzlement trial? Court proceedings for former UNM athletics director begin Monday.