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Jury: Novak guilty of theft

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Jury: Novak guilty of theft

Former Erie trustee faces up to 31 years in prison

By Heath Urie (Contact)
Thursday, December 11, 2008

Lisa Novak is comforted by her husband, Martin Claar, after being found guilty Thursday of stealing money from prospective parents who did business with her now-defunct Boulder-based adoption agency. The trial was held at the Boulder County Justice Center.CAMERA / KASIA BROUSSALIAN / Dec 11 2008

Kasia Broussalian

Lisa Novak is comforted by her husband, Martin Claar, after being found guilty Thursday of stealing money from prospective parents who did business with her now-defunct Boulder-based adoption agency. The trial was held at the Boulder County Justice Center. CAMERA / KASIA BROUSSALIAN / Dec 11 2008

Lisa Novak leaves court at the Boulder County Justice Center after being convicted of stealing money from prospective parents through her former adoption agency.

Kasia Broussalian

Lisa Novak leaves court at the Boulder County Justice Center after being convicted of stealing money from prospective parents through her former adoption agency.

The verdict

Guilty; theft over $20,000; two counts; punishable by four to 12 years in prison.

Guilty; fraud by check; one count; punishable by 12 to 18 months in prison.

Guilty; theft between $1,000 and $20,000; one count; punishable by two to six years in prison.

Not guilty; theft between $1,000 and $20,000; five counts.

Not guilty; theft between $500 and $1,000; one count.

Former Erie trustee Lisa Novak faces the possibility of 11 to 31½ years in prison after a jury on Thursday convicted her of stealing money from prospective parents.

Novak, 48, has been on trial since Dec. 1 on charges relating to her now-defunct, Boulder-based Claar Foundation adoption agency.

Of the nine counts of theft and one count of fraud by check that Novak faced, the jury of nine women and three men decided she is guilty of fraud, two counts of theft of $20,000 or more and theft between $1,000 and $20,000 — all felonies.

A sentencing hearing is scheduled for Feb. 6.

Novak remains free on bond but has moved out of the state. She was ordered to report to probation to make arrangements to leave Colorado until her sentencing hearing, and to undergo a pre-sentence evaluation.

While state sentencing guidelines call for up to three decades in prison for the charges, Novak could instead receive probation, parole, community corrections or any combination of those options since theft does not carry a mandatory minimum sentence.

The prosecution also plans to ask for Novak to pay restitution to victims, prosecutor Bruce Langer said.

Boulder District Judge Maria E. Berkenkotter read the verdict at 3:45 p.m., following about 18 hours of jury deliberation.

There was some brief drama in the courtroom when Berkenkotter accidentally read the verdict in the incorrect order — telling Novak she was found not guilty on some charges the jury actually decided she was guilty of.

The judge immediately corrected the error.

During the seven-day trial, Novak’s defense attorney did not call any witnesses. Novak also chose not to testify in her own defense and has said nothing publicly about the case since she was arrested in March.

Prosecutors described Novak’s former business operation as a sham that took tens of thousands of dollars from couples hoping to adopt but never delivered on promised services. Novak’s attorney maintained that the case was about a business failure, not criminal acts.

As the verdict was read, Novak sat quietly and showed little emotion. Her husband, Martin Claar, placed a hand on her back to console her.

Novak and her defense attorney, Lance Goff, declined comment following the hearing.

Susan Paulson, who lost $5,000 to Novak while trying to adopt a child through the Claar Foundation last year, said she feels vindicated by the verdict.

“I’m glad that the jury was able to see it for what it was, and they weren’t looking at it as simply a business transaction,” Paulson said. “I’m glad they were able to see it specifically for her lies and manipulations. She’s a thief — she is a criminal.”

Novak was appointed as an Erie trustee in October 2003. She served until January 2005, when she resigned from the position after saying she wanted to devote time to helping children orphaned by an Indian Ocean tsunami.

A few weeks before Boulder police arrested her in March, Novak spoke with the Camera about the failing business and prospective parents’ claims of financial impropriety.

She acknowledged then that some former clients were angry about failed adoptions, but she said the business wasn’t financially viable and she had no choice but to shutter the Boulder office.

Novak’s defense during the trial was centered on claims that some former clients of the Claar Foundation targeted Novak with a reign of terror that included filing police reports against her in retaliation.

“It’s a scary process, and when something big and scary happens in the middle of it like that, the worst in people comes out,” Novak said earlier this year.

In November, prosecutors said Novak stole the money to help settle a debt owed to her brother.

2008 Dec 11