Ex-CIA contractor who killed 2 in Pakistan charged with assault in Colo.

(CBS/AP) CASTLE ROCK, Colo - A former CIA contractor involved in a fatal shootout in Pakistan has pleaded not guilty to assault charges stemming from a fight over a parking space in Colorado.

Raymond Davis of Highlands Ranch is accused of causing a vertebrae fracture and other injuries to Jeffrey Maes after an altercation outside a bagel shop on Oct. 1.

He appeared in court on Monday to face charges of assault and disorderly conduct. As a contractor, Davis was held by Pakistan last January after he shot and killed two men he said tried to rob him in Lahore.

Officials who witnessed the incident have told CBS News the American suspect was traveling alone in a Toyota Corolla, and opened firewith a handgun after realizing he was being pursued by the two men. Police told CBS on the day of the shooting that the men who were killed also had handguns in their possession.

The case enraged many in the country, where anti-American sentiment runs high.

Pakistan released Davis last year after the victims' families agreed to accept more than $2 million.

On Monday, police say the widow and mother-in-law of one of two Pakistani men shot and killed by a CIA contractor last year have been murdered in the eastern city of Lahore.

It appears the killings may have been related to the large amount of "blood money" Zohra Haider received to pardon her husband's killer, Davis.

Police officer Athar Waheed says Haider's father, Shahzad Butt, is suspected of killing her and her mother, Nabeela Bibi.

Waheed says Haider wanted to remarry and was supported by her mother. But her father opposed the move, possibly because she would take her fortune with her.

Butt allegedly shot and killed his wife and daughter after an argument over the issue. Waheed said the shooter escaped.