AG won’t appeal ruling in Krolicki case

By J. Patrick Coolican

Published Thursday, Dec. 10, 2009 | 11:27 a.m.

Updated Thursday, Dec. 10, 2009 | 5:57 p.m.

Attorney General Catherine Cortez Masto announced at a morning news conference that she won't pursue an appeal of the dismissal of charges against Lt. Gov. Brian Krolicki.

Although she said she disagreed with the judge's Monday dismissal, she said it would be difficult to overcome the ruling on appeal, adding that she is seeking to preserve scarce resources during the state's budget crisis.

She reiterated that she believes Krolicki abused his authority and misused state funds for a marketing campaign to benefit himself politically without the knowledge or consent of the Legislature.

She said the failed prosecution was neither partisan nor political in nature.

District Judge Valerie Adair on Monday dismissed Cortez Masto’s high-profile prosecution of Krolicki, a Republican.

The charges against Krolicki and Kathryn Besser, who was Krolicki’s chief of staff when he served as state treasurer and is now his chief of staff in the lieutenant governor’s office, arose after the 2007 audit of a $3 billion dollar, state-run college savings program.

No state funds were reported missing, but Krolicki was accused of ignoring state rules in spending and bypassing budgeting rules.

Cortez Masto offered a forceful defense of her case in a statement and in a Sun interview.

"Brian Krolicki spent $1.5 million of the state's money without the Legislature's knowledge or approval in violation of the state Budget Act," she said.

Krolicki spent the money on a marketing campaign for a college savings program, a campaign that featured him prominently. Cortez Masto said the grand jury indictment will act as a deterrent.

"I believe other state officials will think twice about carrying out a similar conduct in the future and will remain true to the state budget process," she said.

Krolicki called the prosecution "an absurd gross waste of resources and energy and precious taxpayer dollars." He added: "I will savor this Christmas like none other."

"People have given me great support, and I’m proud of the legacy we left, and I hope to continue my public service," Krolicki said.

Ryan Erwin, Krolicki's political adviser, fired a shot at Cortez Masto.

"She cost a good man a lot of time, energy, money and reputation, some of which he will never have a chance to get back," he said.