Indictment accuses Lt. Gov. Krolicki of misappropriation
Wednesday, Dec. 3, 2008 | 12:13 p.m.
Lt. Gov. Brian Krolicki
Related blog
Document
Sun coverage
Beyond the Sun
A grand jury has indicted Lt. Gov. Brian Krolicki on charges stemming from his management of a multibillion-dollar college savings program in his previous position as Nevada's state treasurer.
The Clark County grand jury indictment handed up Tuesday names Krolicki and his former chief of staff in the treasurer's office, Kathryn Besser.
The indictment accuses Krolicki of two counts of misappropriation and falsification of accounts by a public officer, and two counts of misappropriation by a treasurer. The four counts all are felonies, and each carries a possible sentence of up to four years in prison.
Besser faces two counts, including being a principal to misappropriation and falsification of accounts and being a principal to misappropriation by a treasurer. The indictments were sought by Attorney General Catherine Cortez Masto.
Krolicki, 47, was the first Republican to announce his plans to run against Senate Majority Leader Harry Reid.
The first-term lieutenant governor said Tuesday there's no basis for the indictment. He says he was targeted for political reasons by Masto—and that Reid was involved. Both Masto and Reid are Democrats. A spokesman for Reid has denied any role in Masto's move against Krolicki.
The indictments were based in part on a 2007 audit that found budget controls were bypassed in the $3.7 billion Nevada College Savings Program. Krolicki has disputed the report's findings, saying auditors were "simply wrong."
Krolicki disclosed late last month that he was told by Masto's office that an indictment would be sought. Masto said at that point that she couldn't comment. Her notice to Krolicki cited a law making it a felony for any misappropriation or falsification of government accounts by a public officer.
When the audit was released, Krolicki, first elected state treasurer in 1998 and re-elected to that post in 2002, said no laws were broken and money invested in the program was "balanced to the penny." The program helps parents to start saving early on for costs of sending children to college.
Kate Marshall, the Democrat who ran successfully for state treasurer when Krolicki was elected lieutenant governor in 2006, had pressed for the audit, expressing concern about how the program had been managed.
Marshall also said she had heard reports of program records being destroyed and said when she took over as treasurer it was difficult to find the information that legislative auditors needed to complete their report.
Legislative auditors said more than $6 million in state funds was used to pay for program expenses, in excess of amounts authorized by lawmakers. Also, auditors said the funds were handled outside the state's accounting system and the treasurer's office hadn't set up accounting or internal control procedures.
The $6 million included more than $3.4 million paid by program managers to a plan adviser. Another $1.5 million was paid for marketing and advertising and nearly $1 million for legal services by a Sacramento law firm, at a rate of about $429 an hour.
Discussion: 3 comments so far…
Comments are moderated by Las Vegas Sun editors. Our goal is not to limit the discussion, but rather to elevate it. Comments should be relevant and contain no abusive language. Comments that are off-topic, vulgar, profane or include personal attacks will be removed. Full comments policy.
Post a comment
Spotlight
- Most Read
- Discussed
- Most E-mailed
- Ritz-Carlton Lake Las Vegas to close in May
- Pricey land buy on Strip a bit of a surprise
- Engineering marvel taking shape near Hoover Dam
- Harry Reid’s co-writer unloads while discussing polls, Obama quote
- Police: Legal runner returned to home, shot husband and wife
- Grim numbers show Nevada leads nation in suicides over 60
- The 10 best steakhouses in Las Vegas
- UNLV back in the polls: No. 23 in AP, No. 25 in ESPN/USA Today
- MGM Mirage to leave N.J. in dispute over Macau partner
- GOP should blame itself for deficit, not Democrats
Blogs
Politics: Ralston's Flash
Miners sue to block mining tax initiative (3 Comments)
Shark Bytes
Willis reminds me of another great UNLV guard (5 Comments)
Elsewhere
With aggressive push, Internet gambling again in play
The Kats Report
A very quick list of which females could replace Steven Tyler in Aerosmith (18 Comments)
A 3.5-day sprint, highlighted superflously at Flamingo with Las Vegas newcomers
Politics: Ralston's Flash
Horsford: No taxes now, but tax reform later (14 Comments)
Gibbons: Cutting the budget can help me raise money (12 Comments)
Calendar »
- 10 Wed
- 11 Thu
- 12 Fri
- 13 Sat
- 14 Sun
-
Harlem Globetrotters at The Orleans Arena
Orleans Hotel-Casino
-
House of Lounge giveaway at Wasted Space
Wasted Space | 10 p.m. to 11:59 p.m.
-
Rakim at LAX
LAX Nightclub | 10 p.m. to 11:59 p.m.
-
Gilley's Casting Call at Treasure Island
Treasure Island Hotel and Casino
-
Freddy B and Mike Remedy at Blush
Blush Boutique Nightclub | 10 p.m. to 11:59 p.m.
-
Blushing at Blue Martini
Blue Martini | 8 p.m. to 11:59 p.m.
The Sun
Locally owned and independent for more than 50 years.
Technorati




















What about that Nuclear Program director who gave himself a 30% raise?
Is he going to be indicted too one day?
The Nevada Attorney General provided guidance on the process and the accounts.
The legislative branch knew everything that was done on a daily basis - while it was happen and did nothing.
Now Reid and the Democrats want Brian Krolicki brought down.
They are saying that the publicly known accounts are False Accounts hence must be a misappropriation and falsification.
How can it be misappropriation and falsification when everybody knoew and allowed that it could happen.
The is Harry Reid who thinks everybody but him "stinks"
This trial must be take place ASAP so both Masto and Reid can be show as the false officer that they are.
Holly Molly, the world's coming to an end in 2012 according to Nastradamus because of the alignment of the earth with the center of the spiral galaxy--the Milky Way. This event occurs ever 3,0000-4,0000 years.
So may be the auditors are not so wrong and may be there are discrepancies in the Nevada College Savings Program.