Nevada Lt. Gov. indicted on fraud charges
From Sunshine Review
4 December 2008
Nevada Lt. Gov. Brian Krolicki was indicted by a grand jury December 3 on four counts of fraud related to his handling of public money while state treasurer. Krolicki, who was the first to announce plans to take on Sen. Harry Reid in 2010, denied the charges, accusing the state Attorney General of dreaming up the case to hurt his chances against Reid.[1]
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[edit] Indictment
The indictment is the culmination of a 20 month long criminal investigation. It accuses Krolicki of two counts of misappropriation and falsification of accounts by a public officer and two counts of misappropriation by a treasurer. His former chief of staff Kathryn Besser is also charged with two counts of misappropriation. All six charges are felonies that are each punishable by four years in jail.[1]
[edit] Audit & Investigation
The two officials have been accused of spending over $6 million in state fees from the college savings program without legislative authorization. Chief Deputy Attorney General Conrad Hafen said, "What we're claiming is that he failed to account for the money that was owed to the state of Nevada. Our focus is on the state-earned fees and the marketing money that was owed to the state," he said. "It wasn't run through the appropriate accounting process."
A legislative audit began after Kate Marshall, who succeeded Krolicki as Treasurer, complained that documents and computer files necessary to manage the college savings program had been destroyed. The audit showed irregularities in early 2007, prompting charges that Krolicki may have broken three state laws by telling the Upromise Company to retain state fees from the program, when they should have been deposited into the state treasury. This money was then used for administration of the program, along with the legal and marketing fees of it.[2]
[edit] Denies all charges
Krolicki resolutely denied all of the charges, declaring, "I can now begin defending myself in the fairness of an open courtroom and to clearly demonstrate that these accusations are false. Mark my words, I will walk away from these proceedings with my head held high, having clearly and unequivocally been found innocent of these allegations."[2]
