Custer County Commissioner arrested, facing felony tax evasion charge after CBI investigation
CUSTER COUNTY, Colo (KRDO) – Less than a month after officials said a Custer County commissioner was cleared of wrongdoing, he’s now been arrested on a felony tax evasion charge following a months-long investigation by the Colorado Bureau of Investigation (CBI).
According to the Custer County Sheriff's Office, a warrant was issued on April 10 for Commissioner Bill Canda. He later turned himself in to the Custer County Jail, where he was officially charged with one count of tax evasion – a Class 6 felony. The sheriff's office confirmed Canda was released after posting a $1,250 bond.
The arrest stems from an investigation by the CBI, launched back in August 2025 at the request of the Custer County Sheriff’s Office.
According to the sheriff's office, the case began after Sheriff Rich Smith became aware of an allegation that Canda had failed to pay taxes. Smith promptly requested an outside agency review, and the investigation was handed to the CBI to avoid any potential conflict of interest.
The CBI completed its report on Jan. 9 and forwarded the findings to the 12th Judicial District Attorney’s Office in Alamosa for prosecutorial review.
On March 14, the sheriff’s office announced the DA had determined there was "no probable cause" that Commissioner Canda had committed any crime.
That’s a conclusion the office is now walking back.
In a Facebook post announcing Canda’s arrest, the department said, "While it was previously believed that the investigation had been closed without charges, that was not accurate."
According to the CBI's case report, made public by the sheriff's office in March, the allegations centered around whether Canda improperly used a county tax-exempt certificate to purchase materials for his private business, Talon Earthworks, rather than for public use.
Those allegations were brought forth by former Custer County Planning & Zoning Director Dorothy Carsten, who asked the Colorado Independent Ethics Commission to review at least six instances in which he may have used the certificate to purchase hardware and supplies for his private septic business.
As part of the investigation, the report reveals that a CBI special agent interviewed Canda at the agency's Pueblo office in December 2025, during which he denied any wrongdoing.
"Special Agent Price: So, Ms. Carsten in her complaint to the Ethics Commission listed, I think it was five other dates that she suspects you may - have you ever in the past used, the county sales tax exemption?
Canda: No. Never.
SA Price: It was just this one instance that we're talking about?
Canda: Never.
SA Price: Okay.
Canda: There's no reason to use it. Uh, I didn't want it that day...I didn't ask for that."
Canda also described confusion over how the county's use tax process was handled, and said the issue was ultimately corrected.
Read the CBI's full report below:
At this time, it’s unclear what new information led to the filing of charges after the DA's earlier decision not to prosecute.
As with all criminal cases, Canda is presumed innocent until proven guilty.
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