UPDATED 9/23/2008 8:16 p.m. 

Betsy Markey's campaign filed a complaint Tuesday with the Larimer County District Attorney's office about allegations made by U.S. Rep. Marilyn Musgrave (R-Fort Morgan), the D.A's office said Tuesday.

The Markey campaign filed the complaint in a letter dated Sept, 17, along with an affidavit, said Larimer County D.A. spokesperson Linda Jensen.

In the letter, Markey takes issue with several claims made in a television ad released by Musgrave's campaign more than a week ago. The ad questioned whether Markey used her position as a U.S. Senate staffer to enrich her information technology company through no-bid government contracts.

A six-member commission convened by the Colorado District Attorney's Council will now investigate the complaint. Colorado law prohibits political candidates from making false statements about any other candidate.

Markey's campaign has consistently dismissed Musgrave's allegations as lies, and have claimed that Musgrave has never shown any evidence of wrongdoing on Markey's part.

Musgrave manager Jason Thielman said in an e-mailed statement that "Betsy Markey has defied Senate ethics and government regulations,(and) deceived the press and the public. 

"If she want to file a complaint than she needs to file it against herself," he said in the statement.

In the letter, Markey attacked a line in the Musgrave ad asking "But what if you knew (Markey) actually got rich on non-competitive Haliburton style contracts and her contracts more than doubled after she took a key Congressional job?"

That, she said in the letter, was "demonstrably false," citing data showing that in 2007 -- the last year Markey worked for U.S. Sen. Ken Salazar (D-Denver) -- Syscom Services received $139,531 in non-competitively awarded federal contracts. As Markey pointed out in the letter, that's nearly two-thirds less than the $408,308 in non-competitively awarded federal contracts Syscom Systems got in 2004.

But the Musgrave ad appeared to be referring to all federal contracts Syscom Systems received: $741,976 worth in 2004 and $1,557,959 in 2007, according to USASpending.gov.

Also, she wrote, by 2007 she had divested her 51 percent stake in Syscom Systems. In November 2005, she turned her share of the company over to her husband, Jim Kelly, according to documents she showed to the Denver Post.

Markey further took issue with the connection of Syscom Systems to Halliburton, saying in the letter that any suggestion that Syscom Systems engaged in fraudulent contracts like Halliburton did was "baseless."

Also, she said the letter, the average profit from non-competitive government contracts from FY2005 through FY2007 was $28617.30. 

"Clearly, I hardly 'got rich on non-competitive Haliburton style contracts.'" Markey wrote.

Other portions of the letter disputed a claim in the ad suggesting her contracts were "worth up to $25 million," and a part calling her "the ultimate Washington insider."

Betsy Markey's letter to Larimer County District Attorney Larry Abrahamson:

September 17, 2008

Larry Abrahamson, Esq.,

District Attorney, 8th Judicial District

200 LaPorte Avenue, #200

Fort Collins, CO 80521-2763

HAND DELIVERY

Re:  Affidavit and Complaint of Betsy Markey

Dear Mr. Abrahamson:

Pursuant to CRS §1-13-101, et. seq, I am filing this affidavit alleging that Marilyn Musgrave and Marilyn Musgrave for Congress have violated CRS §1-13-109 and am formally requesting that this matter be investigated by your offices.  A summary of the relevant facts follows:

In the late 1980's, I co-founded Syscom Services, Inc. (Syscom).  The company provides electronic data services to a variety of customers, including the US government.  On January 1, 2005, I accepted the position of Northern Colorado District Director for U.S. Senator Ken Salazar.  I continued in that position through May 30, 2007, when I left to pursue my run for the 4th Congressional District seat.

Marilyn Musgrave is the Republican incumbent for the 4th Congressional District seat in the US Congress.  I am the Democratic Party challenger.  During the week of September 10, 2008, the Musgrave campaign aired or caused to be aired a political ad as follows:

Mrs. Musgrave:  I'm Marilyn Musgrave and I authorize this message.

Narration:  What would you say if you knew Betsy Markey had grown a small business?

But what if you knew she actually got rich on non-competitive Haliburton style contracts and her contracts more than doubled after she took a key Congressional job (ad shows Wall Street Journal headline reading "Suit Accuses Haliburton of Fraud in Accounting)?

If Betsy Markey used her congressional job to double her company's contracts (ad shows text stating "worth up to 25 MILLION" in text), what will she do as your congresswoman?

Millionaire Markey, the ultimate Washington insider.  It's time to come clean.

This ad has run extensively throughout the 4th Congressional District, which includes Larimer County and the 8th Judicial District, as well as in the Metro Denver area.  The ad has been aired on major television networks throughout these areas. 

No factual basis for the assertions made in this ad are provided by the Musgrave campaign and her campaign director has asserted that it is the responsibility of the Markey campaign to disprove these allegations, not the responsibility of the Musgrave campaign to prove them (see attached Coloradoan article).  Mrs. Musgrave's allegations regarding my conduct while employed by Sen. Salazar are materially false, in violation of CRS §1-13-109.  A summary of the facts follows:

1. But what if you knew she actually got rich on non-competitive Haliburton style contracts and her contracts more than doubled after she took a key Congressional job (ad shows Wall Street Journal headline reading "Suit Accuses Haliburton of Fraud in Accounting)?

•a.      This assertion that I doubled my non-competitive contracts is demonstrably false based on publicly available data (see www.usaspending.gov).  In FY 2004, the last full US fiscal year prior to my employment with Senator Salazar, Syscom was awarded $408,308 in non-competitively awarded federal contracts.  In FY 2007, the last year in which I worked for Senator Salazar, Syscom was awarded $139,531 in non-competitively awarded federal contracts, a DECREASE of nearly 66% from FY 2004!  I note that non-competitive government contracts to Syscom in FY 2005, the first partial year in which I was employed by Sen. Salazar were $89,732 and the increase in non-competitive contracts to Syscom from FY 2005 to FY 2007 was 55%, not 100%.  Similarly, the value non-competitive federal contracts to Syscom in FY 2006, the only full FY in which I was employed by Sen. Salazar were $88,607.

•b.      The assertion that Syscom engaged in accounting fraud, created by overlaying the headline concerning fraud allegations against Haliburton with the assertion that Syscom received Haliburton style contracts, is utterly false.  There has never been any such allegation made against Syscom and Ms. Musgrave's suggestion to the contrary is clearly baseless.

. 

•c.       Perhaps more fundamentally, in 2007 I had no interest in Syscom.  Consequently, the allegation that I doubled my federal contracts during my employment by Sen. Salazar is facially false.

•d.      The value of the non-competitive contracts awarded to Syscom from FY 2005 through FY 2007 was $317,870.  These contracts had an average profit margin of ~9%, yielding approximately $28617.30.  Clearly, I hardly "got rich on non-competitive Haliburton style contracts."

1.  If Betsy Markey used her congressional job to double her company's contracts (ad shows the text "worth up to 25 MILLION" in text), what will she do as your congresswoman?

•a.      The total of all federal contracts awarded to Syscom from FY 2005 through FY 2007, whether awarded competitively or non-competitively, was $2,910,043, less than 10% of the $25,000,000 that Ms. Musgrave's ad alleges.  Indeed, the total value of Syscom, based on all of its contracts, not just the federal contracts is between $3 and $6 million, less than 25% of the amount alleged by Mrs. Musgrave.

1. Millionaire Markey, the ultimate Washington insider.  It's time to come clean.

•a.      During my employment with Sen. Salazar, I never resided in Washington, DC.  Rather, I was based in Fort Collins and served the Northern Colorado district.  Conversely, Mrs. Musgrave has been based in Washington for some six years.

•b.      Mrs. Musgrave earns substantially more per year than I, based on public disclosure documents.

Based on the facts, it is clear that Mrs. Musgrave's ad is false.  Moreover, the comment of her campaign to the local media makes clear that these false statements were made knowingly and recklessly:

"Even with the absence of any evidence of wrongdoing, Markey needs to prove she did nothing wrong because she's "asking for public trust," Musgrave campaign manager Jason Thielman said."  Coloradoan, September 14, 2008.

The false statements represent the type of political deception that the voting public has come to despise.  Ads such as Mrs. Musgrave's deceive the public and undermine the entire democratic process.  The ad, rather than factual, seems to be a desperate attempt by a failing campaign to salvage the election through falsehood and slander.  Equally, these ads are an offense to the good and loyal employees of Syscom.

Accordingly, pursuant to CRS §1-13-101, et. seq, I request that an investigation of this matter be promptly undertaken.  You may be assured that I will cooperate fully with your investigation.  Kindly keep me advised of the status of your investigation.

Sincerely,

Betsy Markey

cc:  Don Quick, Esq.

County of Larimer      )

                                    )  ss.     AFFIDAVIT

State of Colorado       )

I, Betsy Markey, being first duly sworn upon oath, sear and affirm as follows:  That I have read the above and foregoing Complaint and that it is true and correct to the best of my knowledge.

______________________

Betsy Markey

Subscribed and sworn to before me on this __ day of September, 2008, by Betsy Markey.

______________________

Notary Public

My Commission Expires _______________.